Business in Edmonton - April 2019

APRIL 2019 | $3.50 BUSINESSINEDMONTON.COM

TURNING

WEAKNESSES TO STRENGTHS

AND CHALLENGES

PM42455512

TO OPPORTUNITIES

OVERLOOKED THREATS THAT IMPACT WELLNESS AT WORK PAGE

HARRY SUNNER REVEALS HOW FOCUSING ON PEOPLE ENABLES DURABUILT’S CONTINUED GROWTH AND SUCCESS

16 | EDMONTON CHAMBER SECTION

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STORY TITLE // SECTION

Supporting the visions of entrepreneurs one story at a time.

Volume 7 | Number 4

REGULAR COLUMNS

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This Election Season Demand Better of Yourself and Our Leaders

By Terry O’Flynn, Chairman, Alberta Enterprise Group

10

Bill C-69 is a Direct Threat to Manufacturers

By David MacLean, CME Alberta Vice President

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CONTENTS COVER FEATURE

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urning Weaknesses to T Strengths and Challenges to Opportunities Harry Sunner reveals how focusing on people enables Durabuilt’s continued growth and success

By Nerissa McNaughton

ON OUR COVER: ABOVE: HARRY SUNNER, PRESIDENT OF DURABUILT WINDOWS & DOORS PHOTO SOURCE: EPIC PHOTOGRAPHY INC.

FIND US ONLINE! B US I N E SS I N E DMONTON.COM BUSINESS IN EDMONTON

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APRIL 2019 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM

Edmonton Chamber of Commerce

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PCL CONSTRUCTION MANAGEMENT INC. IS PROUD TO WELCOME JASON PORTAS TO OUR TEAM. “Our Edmonton team has diverse skills, knowledge, and experience and is capable of executing major projects like Rogers Place and ICE District, complex civil infrastructure projects, and smaller projects including office fitouts, historical renovations, and new builds. I look forward to working with the team to grow the success of the district by providing the highest level of service possible for our clients and industry partners.”

Jason Portas, vice president and district manager Jason is responsible for the daily operations of PCL’s major buildings, civil infrastructure, and special projects operations throughout northern Alberta. He holds a bachelor of science in civil engineering and a master of science in construction engineering and management, both from the University of Alberta, is a member of the Association of Professional Engineers and Geoscientists of Alberta (APEGA), and is a Canadian Construction Association (CCA) Gold Seal-certified project manager.

Watch us build at PCL.com

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STORY TITLE // SECTION

Supporting the visions of entrepreneurs one story at a time.

Volume 7 | Number 4

THIS MONTH’S FEATURES

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verlooked Threats that Impact O Wellness at Work

By Jamelie Bachaalani

CONTENTS COMPANY PROFILES

61 67 71

N earctic Property Group Celebrates 40 Years

Matrix Video Communications

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By Laura Bohnert

31

Celebrates 40 Years

ell, Well, Well…

W What Have we Here?

A closer look at the financial issues behind orphaned, suspended and abandoned wells

By Jamelie Bachaalani

42

Celebrates 25 Years

Sorrentino’s Restaurant Group

I t’s Time to Kick Into High Gear— The Edmonton Motorshow Is Back

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The Rise of the Rental Market Current real estate conditions are ripe for investment property buyers

By Jamelie Bachaalani

dmonton’s Growing E Neighbourhoods Define Their Identities As major companies start to call downtown home, Edmonton’s other neighbourhoods are taking the opportunity to carve out and refine their identities

By Zachary Edwards

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APRIL 2019 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM

The Gig is Up! The gig economy is here to stay. Should employers be worried?

By Nerissa McNaughton

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REGULAR CONTRIBUTORS Terry O’Flynn David MacLean

THIS ISSUE’S CONTRIBUTORS Nerissa McNaughton Jamelie Bachaalani Laura Bohnert Zachary Edwards

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APRIL 2019 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM

THIS ELECTION SEASON DEMAND BETTER OF YOURSELF AND OUR LEADERS // TERRY O’FLYNN

This Election Season Demand Better of Yourself and Our Leaders

BY TERRY O’FLYNN, CHAIRMAN, ALBERTA ENTERPRISE GROUP

E

lections today are very different from what they were even 15 years ago. Today they are besieged by false news stories, fear mongering and misinformation spread by agents both foreign and domestic. All of this is happening at the speed of hitting the “share” button.

There is an old saying, “I have a right to my opinion.” I think we can all agree on that. However, now – more than ever – it’s important for us to develop an informed opinion.

Let’s avoid voting based solely on stories and memes shared online, that are largely partisan propaganda. Read platforms and watch debates. Have cool-headed conversations with people who may not vote the same way you do. Think about what you want for this province and think about what you are willing to give in order to help the entire province grow better and stronger.

As voters, we recognize our duty to be informed and considerate; let’s also challenge our candidates regarding their duty to speak truthfully and thoughtfully. If we have invested the time to develop our own informed opinions, why should we have any patience for any politician making their opponent seem like the harbinger of the apocalypse?

They must discuss topics in a way that shows they have a plan forward, not just a gift for spewing sensationalized slander across the aisle. Listen to their plans and their values, and pay attention to how they conduct themselves.

Every person running wants a better Alberta even though their plans and their priorities differ, but I believe differences can be presented in positive, constructive, ways. Someone who only throws punches likely has nothing worth defending. When a boxer wins a match, they honour their opponent; they don’t spend the next four years trashing their opponent. That is acting like a champion. Expect your politicians to act like champions in victory or defeat.

IN PERSON, BE RESPECTFUL. DISCUSS AND DEBATE BUT AVOID INSULTING OR BELITTLEMENT. REMEMBER, EVERYONE WANTS WHAT’S BEST FOR THEMSELVES AND THE PROVINCE, AND EVERYONE WANTS AND DESERVES TO BE HEARD. As voters, lets conduct ourselves with a high standard.

Consider the facts. Study each party’s platform. Listen to what they say and how they say it.

Online, think about where the news is coming from. If it’s a story in a major paper that’s been picked up by other news organizations, it likely has more veracity than a meme circulating on Facebook. If a quote seems particularly strange or heinous, look it up for context. If a statistic seems particularly dire, find it in other sources to confirm.

In person, be respectful. Discuss and debate but avoid insulting or belittlement. Remember, everyone wants what’s best for themselves and the province, and everyone wants and deserves to be heard.

Alberta is still the best place to live but we all know this province can be better. Let’s start with ourselves; we each have a responsibility in this upcoming election. We voters need to exercise our vote, and our parties and candidates need to present themselves and their platforms in a positive, constructive, and classy manner.

Let’s be better!

BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // APRIL 2019

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BILL C-69 IS A DIRECT THREAT TO MANUFACTURERS // DAVID MACLEAN

Bill C-69 is a Direct Threat to Manufacturers

BY DAVID MACLEAN

I

t’s almost hard to believe the disastrous Bill C-69 made it to the Senate in its current form. It’s so bad that during hearings on the bill with the Senate Standing Committee on Energy, the Environment and Natural Resources, CME was joined by virtually every business association of consequence with a laundry list of complaints. Even Premier Notley appeared before the committee to plead for massive changes.

What has gone so wrong began as a good idea. The intent was to create a regulatory approval process to approve major resource and infrastructure projects – such as pipelines, mines and airports – in Canada.

Canada’s manufacturers and exporters support the development of Canadian energy and understand the intent of Bill C-69, but in its current form, Bill C-69 fails to do that. The bill will make it more difficult and (in some cases, impossible) to proceed with nationally significant natural resource development projects.

We can’t seem to get things built in Canada and we’ve failed to tap into the wealth of our vast natural resources. Our regulatory system must do far more to facilitate economic growth and competitiveness. A lack of policy clarity has resulted in disputes being settled in court, causing delays and uncertainty. This has cost Canada billions of dollars in investment – investment Canadian manufacturers rely on for their businesses.

As it stands, Bill C-69 places all the emphasis on mitigating assumed potential adverse environmental impacts and ignores economic benefit. The legislation is littered with references to environmental bromides, but only makes passing reference to jobs and revenues for various levels of government.

AS IT STANDS, BILL C-69 PLACES ALL THE EMPHASIS ON MITIGATING ASSUMED POTENTIAL ADVERSE ENVIRONMENTAL IMPACTS AND IGNORES ECONOMIC BENEFIT. In fact, the bill lays out the “factors to be considered” by the proposed new assessment agency in examining a project.

There is no specific mention of economic benefits, but it goes to great lengths to spell out climate commitments, adverse impacts on Indigenous groups and to “the intersection of sex and gender and other identity factors.”

And, despite the stellar health and safety record of Canada’s pipeline and nuclear industries, Bill C-69 will move the approval and condition-setting function for pipelines and nuclear facilities from bodies such as the National Energy Board (NEB), Canadian Nuclear Safety Commission and the Nova Scotia and Newfoundland Offshore Petroleum Boards to Environment and Climate Change Canada (ECCC). If it isn’t broken, don’t try to fix it. Life cycle regulators must not be removed from the project approval process.

Bill C-69 is a mess and must be fundamentally changed before it becomes law. It’s not just about energy and mines.

This legislation will set the tone for economic development for years to come – and will impact every aspect of the Canadian economy. We simply must get it right.

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APRIL 2019 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM

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PCL Continues to Excel Locally and Abroad PCL, the group of independent construction companies that headquarters in Edmonton and carries out work in Canada, the United States, the Caribbean and Australia, is keeping busy with new projects, and with its never-ending mandate to give back.

Recently PCL announced that its Calgary district was chosen as the preferred builder of a fertilizer project for Federated Cooperatives Limited (FCL). The terminal will be built near Grassy Lake, which is about 30 kilometres from Taber, Alberta. Upon completion, the new state-of-the-art, high throughput fertilizer terminal will be able to accommodate up to a 110-car unit train to receive product from domestic and international suppliers.

“We are excited to be partnering with FCL on this fertilizer terminal project,” said Rob Duerksen, PCL agribusiness manager Canada. “Our expertise in this specialized type of construction will help continue our consistent, high-quality project delivery, on-time and on-budget.”

To complete the project, PCL will partner with local subtrades and suppliers, aiming to source a significant percentage of the labour required from local sources while adding 150 jobs to the region during the construction phase.

Work on the terminal will commence this spring and the project will conclude during the summer of 2020. The FCL project is part of the $5 billion represented by the company in its farm-to-plate and agribusiness portfolio.

Meanwhile, the company continues to give back. PCL’s 2018 United Way campaign raised $6.9 million across 28 North American PCL districts. The funds were raised with each district holding a variety of campaigns, from raffles to pie-inthe-face contests, carnivals, and competitions.

Dave Filipchuk, PCL president and CEO noted, “2018 was a very special year for our campaign as it marked the 50th year PCL has supported United Way. PCL employees continue to do what it takes to make their communities better places to live and work across North America. Partnering with United Way allows us to make an important impact by helping those who need it most.”

The company also released a media statement noting, “The $6.9 million in fundraising will help United Way agencies and the individuals who draw on their services. These funds will go towards various partnerships, programs, and services in three main areas that United Way supports: improvements in education, income, and wellness address the overall well-being of children through to adults, from schooling and hot-lunch programs to employment services and health care.”

PCL is making a difference in projects and giving back locally as well as internationally – Phoenix, Arizona civil construction (water infrastructure) division was pleased to accept two project awards from the Southern Arizona branch of the American Public Works Association. One award was for the Marana Water Reclamation Facility Phase 1 Expansion and Recharge Facility, which earned project of the year in the small cities/ rural communities category. The second was for the Clearwell Reservoir Rehabilitation project, which earned project of the year in the structures $5 million - $45 million category.

To learn more about PCL, visit pcl.com.

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APRIL 2019 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM

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Restaurant Realities Campaign Supports Alberta Foodservice Providers Restaurants Canada, a national, not-for-profit association representing more than 30,000 foodservice professionals, has launched a campaign aiming to provide policy solutions for Alberta’s next government.

“Since 2015, restaurants across Alberta have been battling a perfect storm of operational cost increases from a variety of policy changes, against the backdrop of a weakened economy,” said Mark von Schellwitz, Restaurants Canada vice president, Western Canada. “Working together with Restaurants Canada, Alberta’s next government has an opportunity to improve conditions for foodservice businesses so that they can continue serving communities across this province.”

The organization’s campaign, Restaurant Realities, also aims to raise awareness of the current issues facing Alberta’s foodservice sector, including: • A loss of more than 10,000 foodservice and accommodation jobs.

• A decline in the average number of workers per unit from 13 to 11.7.

• A 9.1 per cent drop in average sales per unit (adjusted for menu inflation).

Restaurants Canada pointed out in a recent media release, “For years, Alberta’s restaurant sector led the nation, contributing to jobs, tourism, investment and spaces for people to come together. Alberta’s foodservice sales growth now ranks second-to-last of all the provinces in Canada due to several setbacks caused by operational cost increases from legislative and regulatory changes. Policies that were intended to boost earnings and reduce the cost of living for Albertans have instead resulted in a foodservice crisis.”

An industry already known for it its tight margins, Restaurants Canada estimates that foodservice providers in Alberta average a pre-tax profitability of just 5 per cent, and breaks down financial operating revenues as follows:

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APRIL 2019 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM

• Cost of sales – 33.7 per cent • Salaries and wages – 29.7 per cent • Repair and maintenance – 1.7 per cent • Rental and leasing – 8.0 per cent • Utilities – 1.9 per cent • Advertising – 2.6 per cent • Depreciation – 3.4 per cent • Other – 13.6 per cent • Pre-tax profit – 5.4 per cent While Restaurants Canada forecasts 1 per cent growth in 2019 following a 1.7 decline of growth in food service sales in 2018, the organization points out that the small amount of anticipated growth comes after factoring in (expected) menu inflation of 3.8 per cent, and falls under the 1.4 per cent growth forecasted Canada-wide.

“This weak growth in real sales reveals the difficulties that Alberta’s restaurateurs are continuing to face, not only from the recession, but minimum wage hikes and other operating cost increases. They’re having to make tough choices: their main options are to raise menu prices, reduce staffing levels, or a combination of both. Many have lost skilled workers, in some cases their businesses, and in other cases they can no longer consider expanding or providing more jobs — they are out there mining for margins, just trying to survive,” Restaurants Canada points out.

The launch of Restaurant Realities is Restaurants Canada’s positive, pro-active, communication-focused way to engage the next Alberta government, create new policy that supports Alberta’s foodservice industry, and raise awareness of how current policy is hurting the sector. To learn more or to get involved in the campaign, visit restaurantrealities.ca, and use the hashtag #RestaurantRealities on social media.

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BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // APRIL 2019

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OVERLOOKED THREATS THAT IMPACT WELLNESS AT WORK // HEALTH CARE

OVERLOOKED THREATS THAT IMPACT WELLNESS AT WORK

BY JAMELIE BACHAALANI

O

n February 28, Canadian workers and labour groups joined others across the globe to recognize the 19th International Repetitive Strain Injury Awareness Day. Initiated by injured worker Catherine Fenech and established by a group of health and safety activists on February 29, 2000, the day helps bring attention to an occupational hazard that affects millions of people across many different sectors.

Repetitive strain injury (RSI), also known as musculoskeletal disorder (MSD), refers to a collection of ailments that affect the body’s muscles, nerves, and tendons. Tendinitis, tenosynovitis, and carpal tunnel syndrome are all examples of RSI, and among the most common types of workplace injuries.

If you have noticed a burning, aching or shooting pain developing while repeating the same, ordinary movements — like gripping, holding, bending, twisting, cleaning, and reaching — for a long period of time, you have experienced the early stages of RSI. Working in a fixed or awkward posture for long periods of times in combination with fast paced environments, insufficient breaks and lack of recovery time causes an excessive amount of force on small parts of the body, such as hands or wrists, and can inevitably trigger RSI.

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union, have made significant progress regarding labour movements through campaigns and educational programs.

The Canadian Centre for Occupational Health and Safety also offers toolkits and free e-courses to help raise awareness for RSI. The organization’s latest report shares tips with employers to help them eliminate hazards. Tactics include rotating jobs, distributing work evenly among teams, and increasing the variety of daily tasks. However, if businesses and organizations are not able to implement these strategies, they can make modifications to the workplace to better fit worker’s needs. Adjustable desks and assistive devices such as carts, hoists, or other handling devices can reduce the risk of developing a musculoskeletal disorder in addition to training and extended rest periods.

As more and more jobs require employees to spend long periods of time in front of digital devices, in addition to personal screen time, workers can also develop a visual form of RSI. Working at a computer is a lot more strenuous on your eye muscles than you may think. Your eyes move back and forth as you read, focus and refocus to process images and text, and adjust to glare and changes in contrast.

Figures gathered by Statistics Canada in 2001 show that approximately two million Canadians suffered from RSI and 55 per cent of these injuries were caused by work related activities.

Edmontonians spend an average of 11 hours using digital devices every day, which can lead to headaches, eye strain, dry eyes, and difficulty focusing, which are all symptoms of digital eye strain.

According to the United Food and Commercial Workers union, one out of 10 Canadian workers is afflicted with RSI and the net cost of these injuries exceeds $26 billion, or 3 per cent, of the country’s gross domestic product.

While convincing governments and employers to make RSI prevention a priority has been a huge challenge, organizations such as Unifor, Canada’s largest private sector

“There is an age-old adage that says the eyes are a window to the soul. For me, they are certainly a window into the health of the body,” says Dr. Aaron Patel, an optometrist at the Alberta Eye Health Clinic in Edmonton and past-president of the Alberta Association of Optometrists. While there can be many reasons why people experience dry eye, it’s a condition

APRIL 2019 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM

OVERLOOKED THREATS THAT IMPACT WELLNESS AT WORK // HEALTH CARE

that is often present with digital eye strain. According to a recent survey* conducted by the Alberta Association of Optometrists, 90 per cent of Albertans have experienced dry eye symptoms and three out of five people do not use anything to treat the condition.

Other steps you can take include setting a timer for screen breaks, blinking regularly (you normally blink 12 times a minute, but when you stare at a screen, you tend to blink only five times a minute creating a lack of lubrication), investing in better lighting for your workspace, and decreasing glare.

An optometrist can also help you with computer lenses and glasses to alleviate the symptoms.

“My patients are often surprised when I tell them watery eyes are actually a sign of dry eyes. Other common signs can be sharp eye pain and a gritty feeling in the eye. There is a huge range of treatments for dry eyes. It really just depends on the severity. Sometimes lubricating eye drops can be helpful, but more advanced cases require prescription eye drops, treating eyelid inflammation or infection and at times advanced instruments that heat and express the very important oil glands of the eyelids,” explains Dr. Patel. “The range of treatment options available through an optometrist means struggling along with the condition is not necessary, and these appointments are covered by Alberta Health.”

While an appointment with your optometrist can help with digital eye strain, there are many more reasons an eye exam is important.

“Did you know that over half of people who are eventually diagnosed with Multiple Sclerosis first complained about vision loss and pain to their eye doctor? The body is tied together in the most amazing ways. Sometimes vision strain can be the cause of headaches, but an eye exam can provide early signals of a possible brain tumour, aneurysm or bleeding

DID YOU KNOW:

• • •

All Albertans are covered by Alberta Health for medically necessary and urgent care appointments with their optometrist.

No referral is required, and most optometrists will see patients the same day if the matter is urgent.

Optometrists have the proper knowledge and specialized equipment necessary to diagnose, treat and prescribe medications for visual health issues. If needed, they can refer to a specialist.

THIS INCLUDES:

Your SIGHT is a gift that deserves protecting!

• • • • • •

Dry eye Infection, injury or inflammation of the eye and eyelid.

Foreign objects in the eye.

Sudden changes in vision.Monitoring for diabetes and glaucoma complications.

Retinal detachment, defects and diseases.

Pre and post-operative care for cataract patients.

www.optometrists.ab.ca/urgentcare BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // APRIL 2019

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OVERLOOKED THREATS THAT IMPACT WELLNESS AT WORK // HEALTH CARE

in the brain. Even if someone sees well, they may not realize part of their peripheral or colour vision is being affected,” Dr. Patel explains.

In Alberta, children’s (until 19) and seniors’ eye exams are covered by Alberta Health. Children should have an eye exam every year while in school, but the first appointment should take place at six months and a second appointment between two and five years. Adults without any eye issues should be seen every two years, while seniors should be seen yearly.

While regular eye exams and the prevention of work-related injuries are important to the overall health of an organization, employers and management must also focus on mental health problems that can arise from these injuries or other trauma. According to the Canadian Mental Health Association (CMHA), in any given year one in five people in Canada will personally experience a mental health problem or illness; and a survey conducted by Ipsos in 2017 found that four in 10 employed Canadians have either been diagnosed as depressed or believe they suffer from depression.

“Often, when we think of health overall, we create a dichotomy and separate mental health from physical health, but the components are linked. Our physical, spiritual, mental, and emotional health all impact our overall health,” says Ione Challborn, the executive director of CMHA Edmonton. Founded in 1918, the CMHA is one of Canada’s oldest voluntary organizations. With branches located across the country, over a 11,000 volunteers and staff members provide services and support to more than 1.3 million Canadians every year.

“If someone has poor physical health, they may also have poor mental health and vice versa. None of it sits outside the other. You have to think of it as a lot of moving parts, all of which support the other. For some people, that realization is quite an ‘aha’ moment.”

“Physical and mental health are almost indistinguishable in the sense that good physical health means the likelihood of better mental health, and good mental health encourages better physical health. You can’t really separate the two of them when you are talking about overall health, and your health needs to be treated for better or worse,” adds Mark Korthuis, president and CEO of the Mental Health Foundation.

The Mental Health Foundation does not provide direct services to Albertans. Instead, the organization looks at mental health as a whole across the province and identifies gaps and areas in the system that need support. Through raising funds and mobilizing resources, the Foundation advocates for a barrier-free, easy-to-navigate, and fully integrated addiction and mental health care system—with a focus on community-based programs and services.

“We are at a point right now in our society where movements like Bell Let’s Talk Day have reduced the stigma surrounding mental health, and, therefore, people feel more comfortable saying they are not okay and are asking for help. But the movement to reduce stigma has been done in isolation from a movement to ensure sufficient support services are in place, and we need to ensure that there is an effective system in place for individuals with a mental health issues — one that is easy to navigate and accessible. Which is an issue we currently face across the world,” says Korthuis. “Reduced stigma is only notable in conjunction to a supportive system that enables individuals to get help. It takes a lot of courage for someone to ask for help but if it takes them nine months to finally see someone, then they may not take that step again.”

One of the biggest hurdles for anyone suffering from mental illness is overcoming the stigma attached to it. Since 2011, Bell Let’s Talk Day has been driving a national conversation to raise awareness about mental health and challenge the negative stereotypes that have contributed to a worldwide stigma. Over the last eight years, Bell has donated over a million dollars towards mental health initiatives across the country. However, how can workplaces ensure their employees have access to these types of initiatives once they have reached out for help?

“I think ultimately more and more companies are recognizing that in order to maximize productivity, they need to have employees who are engaged, mentally healthy, and able to work at the best levels possible. Providing benefits that enable employers to access counselling, therapy or medication is a first step, but that is also dependent on the size of the company. Aside from traditional benefits, a culture of awareness and an internal strategy within the workplace can go a really long way to help people access those resources. I think we are going to see a formalization of * SURVEY METHODOLOGY: APPLIES TO THOSE AGED 18 AND OVER. AN ONLINE OMNIBUS SURVEY WAS CONDUCTED BETWEEN APRIL 20-21, 2017. EIGHT HUNDRED AND FOUR ALBERTANS AGED 18 AND OVER WERE SURVEYED. THE ESTIMATED MARGIN OF ERROR FOR THE EDMONTON SAMPLE IS +/- 5.7%.

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OVERLOOKED THREATS THAT IMPACT WELLNESS AT WORK // HEALTH CARE

mental health strategies in the near term, which, historically, we haven’t seen as formally across the board.”

Luckily, businesses and organizations have access to a plethora of resources for developing workplace mental health strategies. One of those resources is the Colbourne Institute for Inclusive Leadership, which is regionally and nationally recognized as a leader in diversity and inclusion services, applied research, strategy, and customized training solutions that encourage and support organizations in developing and sustaining inclusive cultures.

“Within the strategy itself, it’s important to think about the many layers of identities. We aren’t definable by one thing, like our gender or age. We have multiple layers and unique personalities. We want people to think of how they interact with one another, how work shapes them and how they shape work,” says Dr. Lori Campbell, principal of the Colbourne Institute.

“We think about mental health in terms of psychological health and safety, and it is absolutely one of the core principles of inclusion in the workplace. If employees don’t feel safe at work, then they don’t feel like they can bring their full selves to work. So, they might start to hide aspects of their identity because they feel vulnerable and that impacts their engagement.

A workplace that is respectful and free of harassment means employees can really shine.”

In Campbell’s opinion, one of the challenges that an organization grapples with the most when it comes to implementing a mental health strategy is the idea of opening a door or starting a conversation but not having the necessary skills to engage with their team.

“What does a supervisor do when they pass someone crying in the office? What is the organization’s role in that case?

It can be a tough issue to navigate but there are some very effective tools they can draw on,” says Campbell. “There are great resources like the CMHA or the Mental Health Commission of Canada to lean on. They offer a variety of tools, frameworks, guides, and supports.”

Campbell also recommends workplaces analyze how they conduct meetings and performance reviews, gather feedback, and recruit new team members to see if they are unnecessarily excluding people through policies and language.

“We want people to feel acknowledged and that they belong so they can bring their best selves to work, and these behaviours have to be supported by the structures and policies of the organization,” she concludes.

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BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // APRIL 2019

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TURNING WEAKNESSES TO STRENGTHS AND CHALLENGES TO OPPORTUNITIES // COVER

TURNING

WEAKNESSES TO STRENGTHS

AND CHALLENGES

TO OPPORTUNITIES HARRY SUNNER REVEALS HOW FOCUSING ON PEOPLE ENABLES DURABUILT’S CONTINUED GROWTH AND SUCCESS

BY NERISSA MCNAUGHTON

H

arry Sunner was just 19 years old when his family moved from England to Canada. Sunner and his father joined another business partner at Durabuilt Window Systems, but within a few short years, the Sunners became sole owners of the company. At that time the company had 12 employees and hand tooled PVC windows.

Today, Sunner is the president of Durabuilt Windows & Doors, a thriving Edmonton success story with more than 400 employees, a wide range of innovative products and multiple locations.

For Sunner, it’s been quite a journey.

ABOVE: HARRY SUNNER, PRESIDENT OF DURABUILT WINDOWS & DOORS PHOTO SOURCE: EPIC PHOTOGRAPHY INC.

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TURNING WEAKNESSES TO STRENGTHS AND CHALLENGES TO OPPORTUNITIES // COVER

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TURNING WEAKNESSES TO STRENGTHS AND CHALLENGES TO OPPORTUNITIES // COVER

“I call it re-defined,” he says when asked how he feels about the rapid growth and development of the company. “I use the term re-defined quite a bit because we shifted from the window business to the people business. When you start with 10-15 employees the culture is to work hard, and others will follow, but when you have 400+ employees, that doesn’t work! Create a vision others can embrace, communicate the goals and set the direction. If you take care of your people, they will take care of the business. That is the change in our corporate culture.”

He pauses after using the word “corporate.”

“I don’t like the word corporate because we are private. My audacious goal is to have an autonomous company but never to lose the appreciation and empathy for our employees and customers. Even though we went from 10 to 400+ employees we still hold the values and morals we started with, now leading to help people win and align ourselves to be a professional brand.

How does one support a team that size?

“It’s all about alignment,” confirms Sunner. “Whether it’s the office space they work in, training and development or a simple recognition. We are suffering a downmarket, but we continue to invest across the organization to build a better future, such as spending $600,000 for a staff lunch room. The wellbeing of our employees is a constant value we deliver. It’s taken years to inspire a winning team, so why wouldn’t we take care of them? At every level we have re-branded and done things in our offices such as events, bringing in guest speakers and rewarding people on our wins and successes. The health of our organization starts with our people.”

Durabuilt has four channels of business: new home builders, renovations, dealer distribution and contractors.

“Durabuilt is well known for innovation and constantly going to market with new products,” smiles Sunner. One of our core values is innovation; think ahead to stay ahead.

We must always be agile and aligned with our clients. We continually work hard to make sure price is not the only factor as to why our customers do business with us. We go the extra mile, then always go one more. Over the past 30 years we have had our growing pains, but many customers

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have supported us through all stages. Our customers and employees have made Durabuilt a trusted brand, but I do say that with that with maybe a degree of ego,” laughs Sunner.

“Our primary stakeholder is the community,” Sunner continues, noting his and the team’s passion to be a positive influence in the cities in which they operate. He credits his desire to give back to the example set by his parents.

“Caring is one of our core values,” Sunner explains. “As a family my parents have always given back and have been very generous to the immediate family and community, even when we had no money. Sometimes it’s not about money, but what you can do to help. I believe one must give to grow as a brand, individual and company.”

For the past few years Durabuilt has been a major sponsor of heart pledge day at the Mazankowski Alberta Heart Institute.

“During our recent visit we had the pleasure of touring the cardio operating room and meeting some of the doctors,” says Sunner. “Durabuilt has supported the Mazankowski Heart institute for more than 15 years and we are among the group of pioneer donors to the Guru Nanak Healing Garden, which was initiated by my father. Cardiac patients receiving world leading care in the heart of our city with some of the world’s best doctors saving lives every day makes me extremely proud.

“I have been on the CASA board for a few years and I am proud of how Durabuilt supports this great cause. Just a few ways the company gives back include jean day Fridays (where the staff wear jeans in exchange for donating to a charity), the CASA gala and our annual golf classic.” Sunner notes that a down market has no bearing on the company’s willingness to give back, as caring is such an important pillar of Durabuilt.

“Edmonton is growing and full of opportunity. If you are an immigrant coming in, or opening a business, or an entrepreneur that has been living here since the ’60s, there is an opportunity for you in this city. I think the future is very bright in Edmonton. That is why being local is very big for us. We are proud to be an Edmonton-based business,” says Sunner.

In addition to finding inspiration in the energy of the city, Sunner is inspired by his circle of family and friends, and the daily successes at work.

Don’t Leave Your Business to Chance Business is risky enough without taking unnecessary chances. You need to be prepared, which means working succession planning into your routine — so it’ll be there for you when you need it most.

To ExitSMART™, contact Lynne Fisher, Senior Manager, Succession Services, at 780.401.7085 or lynne.fisher@mnp.ca

TURNING WEAKNESSES TO STRENGTHS AND CHALLENGES TO OPPORTUNITIES // COVER

“I am blessed to be surrounded by the amazing people in my life. I have worked with my father since the age of 10 and he is a product of the most challenging times. I have been formed by lessons seen and learned from a young age. Not many can have such a great father-son working relationship for 33 years.

I do get discouraged at times but when I do, people to pick me up and encourage me to keep going. On the business front I’m motivated every day by tiny pulses of success, such as staff talking to me about new products, challenging the status quo, a new client onboarding, or new team member joining.

Any tiny pulse around the whole organization is what I strive for. You get bad news sometimes too, but every time you see something going well, it lifts you up.”

He pauses to reflect.

“When I look back to when Durabuilt was just me and my dad and our small team of 10 – 15 staff, the goal was just about putting bread on the table. What we have now wasn’t a dream we were chasing. When you look back to what the business has become, you are humble enough to appreciate that you are somewhere you never expected to be. So, a few mishaps? Your skin is thick enough to withstand them.”

That doesn’t mean the challenges don’t push Sunner and his team, but they rise to the challenges and meet them with optimism.

“The economy isn’t helping us,” he divulges. “There is also the problem of alignment. If your team is not aligned things can become challenging. We strive to ensure alignment across the organization, and that is the toughest thing in a company of this size. However, we continue to learn from our mistakes.”

With nearly 30 years of business behind him, Sunner looks back on what he’s learned along the way.

“I’ve always had drive and found inspiration in people that were better or had stronger, bigger businesses. I never had an approach of jealousy, but of open, inquisitive learning.

Edmonton is surrounded by many great entrepreneurs, and when you look around and network, you learn how those companies became successful.”

“There was a point eight years ago when I hit a brick wall as an entrepreneur. I felt my leadership abilities were expiring. A good

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friend and client, Henri Rodier, gave me the wisdom to join TEC, which is a peer group of entrepreneurs working through challenges. After joining, Durabuilt’s growth accelerated, leadership went a new level and the business started to transform. I applied every piece of what I learned into myself and Durabuilt, otherwise I may have needed to resign.”

He continues, “Your team is the biggest thing and sometimes I learned that the hard way. Your surroundings are imperative of what you and your brand will become. Be vulnerable and recognize your weaknesses and enable others to be better than you.”

As his family is one of the places he draws strength, he’s learned, like so many young entrepreneurs before him, that work/life balance is a foundation for lasting personal and professional success.

“When you can’t tuck your kids into bed when they are young, you miss that,” he says. “I spent many years of the business going seven days a week and working nonstop. I handle it better now. Work/life balance is very critical at this stage in my life. My wife has stood by me like a rock, encouraging and supporting me. Now I know that shutting off from work is important. Besides, my body can’t handle seven days a week now! To help maintain balance my whole family works out and carries that health consciousness into the company as well. We encourage work/life balance and support healthy choices for the entire team.”

Being bold has also helped Sunner grow the brand and meet personal challenges.

“Chances? Take them!” he exclaims. “Many people talk about taking chances but are too worried to execute on them. Be agile. Take risks but be prepared to hammer out the pain.

That is the difference between an entrepreneur and a nonentrepreneur. If you think it, then believe in it, have your pride and passion and execute it. That is something I have not been afraid of. I feel things are not impossible. If I’ve done what I’ve done, what stops me from the next goal, vision or idea? What stops me from going further if I’m already this far today? Don’t just look at the long term. Look at the short term. If a year looks difficult, look at the day. If the day looks difficult, look at the hour. It’s like skiing down a black diamond hill. If you look down and you are scared,

TURNING WEAKNESSES TO STRENGTHS AND CHALLENGES TO OPPORTUNITIES // COVER

take the run 30 feet at a time. It’s much easier to finish what you want to do when you take this approach.”

Durabuilt has a long history, but for Sunner, the journey is still in its infancy – and there is no ending point.

The skiing analogy is pertinent to Sunner, who not only skis, but also golfs, runs, and bikes.

“The biggest thing for me at this point is to try and create the next group of leaders; to have a self-driven company that is less driven by myself and more driven by the next leaders so I can continue to be a better leader to my group,” he concludes. “I’m at a point where I think inspiring, coaching and development is more of how I measure my success. I want to know how I can get the next leaders in the organization to be better than me. I’ll start by having people around that are smarter than me, and taking care of them.”

“I have too many interests and hobbies,” he laughs. “I’m a jack of all trades but a master of none!”

Although Durabuilt has earned many awards over the years, including Canada’s Best Managed Companies, Canada’s Safest Employers, Business in Edmonton Leaders and Top Window & Door Manufactures for five consecutive years, to name a few, for Sunner, the real reward is what he sees in the business every day.

“Our biggest reward is the people that make up our brand, seeing and developing the team to see what we can do next.

Also, no award can supplant working with my father for 33 years. That’s not easy to do for many people, but it was very rewarding for me. My family, my team, my friends – those are the highlights of my life.”

Sunner is also excited to report on new products in development that he believes will “turn the market in the next five years.”

He concludes, “We say, ‘think ahead stay ahead.’ There is further growth on the horizon as we continue striving to be the best brand in the industry.”

ABOVE: HARRY SUNNER, PRESIDENT OF DURABUILT WINDOWS & DOORS PHOTO SOURCE: EPIC PHOTOGRAPHY INC.

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IT’S TIME TO KICK INTO HIGH GEAR—THE EDMONTON MOTORSHOW IS BACK // EDMONTON MOTORSHOW

IT’S TIME TO KICK INTO HIGH GEAR

—The Edmonton Motorshow Is Back

BY LAURA BOHNERT

F

or the past 42 years, car enthusiasts have been lining up for the largest car show in Western Canada, and this month the event is back in action with all the latest manufacturers, classics, exotics, and customs. Do you have your tickets for the Edmonton Motorshow?

Eleasha Naso, executive director of the Edmonton Motor Dealers’ Association and show manager of the Edmonton Motorshow, explains why this is the event you don’t want to miss.

“This is where manufacturers get to show off all the newest vehicles and technically interactive elements; some manufacturers are even planning to have virtual reality technology to engage with clients and visitors.”

Of course, the Motorshow will also host all the latest and greatest models, with more than 650 vehicles on display among other interactive elements, simulators, and more.

“I’m excited to say that the Felino cB7R will be coming to the show for the first time ever,” Naso adds.

The Felino is a Canadian-built super car (the second Canadian super car to be produced) that is designed to resemble as closely as possible the look and feel of a race car, and to be custom built to each driver. The designer, Canadian racing driver Antoine Bessette, designed the car for the track while making it street legal.”

“People here definitely haven’t seen the Felino yet,” Naso notes, adding that “it’s always exciting when we have something on display at the Motorshow that people would not get to see on the streets in Edmonton.”

“The Jeep Gladiator is another one of our 2019 featured vehicles,” Naso continues. “A lot of people are excited to see it, along with the all-new Toyota Supra. People have been waiting years to see what the new Supra was going to look like, and they’ll be able to come see it in person.”

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IT’S TIME TO KICK INTO HIGH GEAR—THE EDMONTON MOTORSHOW IS BACK // EDMONTON MOTORSHOW

And the hot new vehicles aren’t the only exciting additions to this year’s show.

“One other new feature this year is soap box racing,” Naso points out. “This feature is more geared toward families and children. We want to get the young people excited and hyped up, plus it has an interactive element in that they’ll be able to get in a soap box as well. We’ll have a little track set up that they can race on.”

Along with the new additions, the favourites will be back by popular demand, including the Precious Metal Gala.

“The Precious Metal Gala is the premier to the show,” Naso explains. “It’s the big celebration before we open the doors to the public. It’s also the best way to get a sneak peak of the show—and a great way to network as we have many businesses out on that evening.

“The Gala is where the manufacturers and dealers come to celebrate the show’s opening, so it has a different ambiance than the actual show. Each of the cars is spotlighted, and

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because the Gala doesn’t have the crowds that public days do, it’s a good opportunity for people to see the vehicles at a more leisurely pace, as well as get a bit more up close and personal with some of the more exclusive ones. Each year there’s a different theme, so if you came last year, 2019 is going to be different, with different entertainment, menus, and all new vehicles on the show floor.”

The basic principle of the Precious Metal Gala doesn’t change, though. It is still a charity event with its proceeds going to high school shop programs and post-secondary scholarships.

Last year, $200,000 in scholarships were given out.

“Unrivalled rides will be back this year as well,” says Naso.

“We had a new champ last year who will be returning, and nine other vehicles will be competing against him to take his crown away—or maybe he will win again!

“The Electric Garage auction is also back, featuring collector cars from the ’50s to current, some rare and some modified, along with other memorabilia, including rock and roll and

IT’S TIME TO KICK INTO HIGH GEAR—THE EDMONTON MOTORSHOW IS BACK // EDMONTON MOTORSHOW

celebrity pieces. More than 100 vehicles go across the auction block, so it’s a good place to scoop up deal, add to your collection, or just enjoy the entertainment of watching people outbid each other.”

“And the exotics are back,” Naso adds. “Ferrari, Maserati, Rolls Royce, Aston Martin, Bentley. Racing for the Cure will be back as well, bringing in tons of exotics so you can see rare vehicles you don’t get to pull up to everyday on the street.

“The Edmonton Motorshow really is your one stop for anything automotive. If you are in the market for a vehicle, it’s the best way to see all of the new models under one roof.

If you aren’t looking for a vehicle, it’s still a fun day for the whole family. The interactive elements, including racing games and virtual reality, are a lot of fun, and children love getting to sit in all of the vehicles. It’s also the show for new vehicles, exotics, aftermarket parts, to see custom builds, and to vote in the competition – at $15 it’s a really good entertainment value.”

She concludes, “Vehicles are such big part of our lives; people don’t always realize how much time we spend in a vehicle or how much we take them for granted, but our lives would be so different without them. The Edmonton Motorshow is a great opportunity to showcase everything that’s out there – the new technologies and the direction things are going, and to see how these technologies are going to impact and change our everyday lives. It’s one thing to read about it all online, but especially with vehicles, the opportunity to come out and experience it up close can’t be replaced.”

The Edmonton Motorshow runs from April 4-7 this year, with the Precious Metal Gala opening the show on April 3. The collector car auction runs Friday through Sunday (it is not open to the public Thursday and is the only feature of the show not included in the Thursday ticket). If you haven’t picked up your ticket yet, don’t miss out! Visit www. edmontonmotorshow.com to get your tickets, and follow the Edmonton Motorshow on social media for more behind-thescenes looks at this year’s show.

BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // APRIL 2019

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WELL, WELL, WELL…WHAT HAVE WE HERE? // ENVIRONMENTAL STEWARDSHIP

WELL, WELL, WELL… WHAT HAVE WE HERE?

A CLOSER LOOK AT THE FINANCIAL ISSUES BEHIND ORPHANED, SUSPENDED AND ABANDONED WELLS

BY JAMELIE BACHAALANI

C

anada’s energy sector is vast and complex, but one thing is simple — oil and gas resources are dwindling and Alberta’s economy is in a crisis. As the industry continues to shrink, more and more oil firms are ceasing operations and abandoning their wells. According to the Government of Alberta, there are approximately 69,000 abandoned wells scattered across the province’s agricultural land. A recent report by the C.D. Howe Institute estimates more than 155,000 wells in Alberta have no economic potential. Although that sounds alarming, abandonment isn’t the cause of our province’s financial woes. In fact, property owners like Daryl Bennett consider abandonment to be a good thing.

“Abandonment means that all surface infrastructure has been removed and the well is capped underground and covered. This is what landowners want to happen to a

non-producing well because they are closer to being able to farm the entire leased site again,” explains Bennett, who is also the director of the Action Surface Rights Association (ASRA). The ASRA is a nonprofit organization composed of landowners who are dedicated to helping fellow landowners understand and navigate government and industry processes when dealing with the energy sectors.

Although abandoned wells generally pose less risk than suspended wells, which are unplugged, they can still omit air pollutants and cause soil and water contamination, which leads to food and farm safety concerns. Nearby fracking can also cause old abandoned wells to explode and leak.

Sealing a well is only the first step in restoring a site, and farmers can only grow crops on land that has been fully reclaimed. However, landowners in Alberta cannot legally deny an energy company from drilling on their property,

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WELL, WELL, WELL…WHAT HAVE WE HERE? // ENVIRONMENTAL STEWARDSHIP

IT SEEMS LIKE THIS 12-FIGURE CLEANUP JOB HAS ANOTHER SILVER LINING. BOYCHUK SEES RECLAMATION AS AN OPPORTUNITY FOR A JOB CREATION PROGRAM THAT CAN OFFER FULL-EMPLOYMENT IN THE ENERGY SECTOR FOR DECADES TO COME. so the responsibility is on the company involved in the development and production of the well.

“Reclamation restores the land, both on a surface and subsurface level, to a pre-development state. It may not return to its original state, but it is more likely to be capable of supporting enhanced biodiversity and ecosystem services such as carbon sequestration, retention of water, and erosion protection,” says Brian Ilnicki, executive director of the Land Stewardship Centre, a nonprofit organization that works with people and organizations to improve their understanding of healthy ecosystems, and encourages the development of practices and policies that support sustainable resource use. Their Alberta Stewardship Network and Watershed Stewardship Grant programs are a few ways that the Land Stewardship Centre help grassroot groups undertake projects like invasive species management, water quality testing, and overall capacity-building.

Restoring the land as close to its original state as possible requires the soil to be remediated of any contamination. To do this, the well must first be permanently sealed. Then the head must be removed and the pipe below the ground has to be severed. Access roads must also be removed before any topsoil is returned back to the site. However, this process isn’t cheap, and recovery isn’t guaranteed even if a site has been issued an official reclamation certificate. Unfortunately, it also happens to be the last priority for many oil and gas companies and even a few government agencies.

“Every year, a well produces less than the year before so every company is in a state of decline. Aging and inactive wells are managed in Alberta by the Licensee Liability Rating (LLR) program, which is designed by the oil and gas industry itself.

It allows the industry to carry on drilling and producing wells without funding eventual cleanup until bankruptcy, which is when the profit from three years’ additional production is used to fund the cleanup. Unfortunately, the Alberta Energy

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Regulator (AER) has never had any mechanism to collect that those funds,” explains Regan Boychuk. Boychuk is an advocate for the cleanup of oilfield environmental liabilities and the founder of Reclaim Alberta.

While the Alberta Energy Regulator does have a system in place to ensure that financially unstable companies pay their deposits for cleanup, it is outdated and has not been strongly enforced.

According to a recent internal report from the AER, this has left Alberta with a $260,000,000,000 oil patch cleanup bill that no one seems eager to pay. Cue the economic crisis.

“The collapse of the price of oil didn’t help, but the AEG hasn’t been properly enforcing liability management programs out of fear that it would lead to more companies going bankrupt.

The AER should have been requiring deposits when the price of oil was high, but, so long as everyone was making money, the Conservative government was happy to let operators exploit the system. Unfortunately, now the taxpayer may be responsible for the clean-up,” Bennett adds.

Although a few fingers are being pointed at the AER for its role in Alberta’s current environmental and economic debacle, the organization did appear before the Supreme Court of Canada last year to dispute the ruling of the Redwater Case. The ASRA also made an appearance to appeal the decision that bankrupt energy companies, particularly Redwater Energy Corporation, could abandon wells during bankruptcy proceedings without reclaiming the sites.

After Redwater Energy Corporation went belly-up in 2015, its bankruptcy trustee wanted to sell the firm’s valuable wells and repay its bankers before paying for clean up. These wells would then become the responsibility of the Alberta’s Orphan Well Association (OWA). The OWA is a collaboration between the Alberta Government, provincial regulators, and the oil and gas industry, and works to protect public safety by managing the environmental risks of abandoned

WELL, WELL, WELL…WHAT HAVE WE HERE? // ENVIRONMENTAL STEWARDSHIP

oil and gas properties that do not have a legally or finically responsible party to hold accountable. However, the association’s files are already bulging. As of March 2017, the OWA had an inventory of 2,084 orphaned wells.

It seems like this 12-figure cleanup job has another silver lining. Boychuk sees reclamation as an opportunity for a job creation program that can offer full-employment in the energy sector for decades to come.

Redwater Energy Corporation’s receiver and creditor, Grant Thornton Limited and ATB Financial, went to court in May of 2016 to determine whether or not they could walk away from their leased sites without funding cleanup. The Alberta Queen’s Bench ruled in their favour. Under the ruling, the profits from the sale of assets, which included 17 producing wells, would first go to creditors instead of being used to clean up operations sites. However, this decision was recently appealed by both the AER and the OWA and overturned by the Supreme Court with a 5-2 majority. The Supreme Court ruled that even bankrupt oil and gas companies are responsible for cleaning their messes, and the money left over from Redwater’s assets must be used for reclamation.

“If Alberta retooled its economic engine to restore the landscape of this beautiful province, rather than continuing to ravage it with extraction, riggers could keep right on rigging and truckers could keep on trucking. With comparatively little retraining or relocation, hundreds of thousands of oilfield service workers could keep doing what they do, where they do it — protected by the same unions too,” wrote Boychuk for an article in last year’s The Star.

As to what will happen in the future, however, only time will tell.

Bennett believes that this ruling means the Alberta Energy Regulator will have a greater claim on the good assets of a company and should be able to liquidate them to help pay for clean-up.

“Now, it’s more unlikely that operators will arrange to go bankrupt to avoid clean-up costs. Redwater may make it more difficult to get funding from banks, however, lenders likely won’t be so quick to force bankruptcy either, because they won’t get anything out of it. It may also create an incentive for solvent companies to clean-up wells more quickly as they attempt to remove liabilities from their financial records in order to get more loans from lenders, but they won’t be able to dump them onto the OWA as quickly now,” he says.

SUPPORTING BUSINESS SUCCESS IN EDMONTON Let the Edmonton Chamber of Commerce help you today.

edmontonchamber.com/membership

BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // APRIL 2019

33

Decision 2019: Keep Alberta Competitive

2019 Board of Directors Board Executive

Chair: Dawn Harsch President & CEO, ExquisiCare Senior Living and Care at Home Vice Chair: Bryan DeNeve Senior Vice President Finance & CFO, Capital Power Treasurer: Craig Thorkelsson Head of Tax, PCL Constructors Inc.

Board Directors

Dr. Glenn Feltham President & CEO, Northern Alberta Institute of Technology Sandy Jacobson Vice President, Richardson Executive Search Elan MacDonald Senior Vice President, National Client Development, Global Public Affairs Scott McEachern Vice President, Pipeline Control, Enbridge Pipelines Inc. Dennis Schmidt Legal Counsel and Associate Development Manager, Alldritt Land Corporation LP Jeffrey Sundquist Chief Executive Officer, Clean Industrial Technologies Dr. Jenelle Trenchuk-Saik President & CEO, Parker Ford and MacKay Specialty Opticians

Edmonton Chamber Executive Janet M. Riopel President & CEO

Dave Warren Chief Operating Officer Tim Ferris Director, Member Services Brent Francis Director, Advocacy and Outreach

Contact

Edmonton Chamber of Commerce #600 – 9990 Jasper Avenue Edmonton, AB T5J 1P7 T: 780.426.4620 • F: 780.424.7946

I

By Janet M. Riopel, President & CEO Edmonton Chamber of Commerce

t’s decision time. With election day fast approaching, the Edmonton Chamber has been hard at work making sure that Alberta’s political parties – one of which will form the next government – are all well aware of what the Edmonton business community needs in order to succeed over the next four years.

Throughout 2018 we surveyed our members to understand their concerns heading into the election. We have now released our 2019 provincial election priorities.

Entitled Decision 2019: Keep Alberta Competitive, these priorities respond to core issues facing business in Edmonton. Regardless of which party forms the next government, it is crucial that our elected officials strengthen Alberta’s competitive edge by focusing on three key priorities: #1 - Enhance competitiveness by addressing the cost burden on business.

Higher taxes, fees, and regulations piled on by all orders of government are pushing many Edmonton businesses to the breaking point. This includes: • the direct costs of policy changes like higher corporate taxes, • the costs incurred by businesses as they work to comply with new regulations, such as changes to statutory holiday pay included in the Employment Standards Code, • a 48% increase over the past three years to minimum wage, which has now hit $15 per hour, and • carbon taxes, which have increased the cost of transportation and heating fuels for businesses across the province.

During the 2019 election, we need all parties to show us how they would address the ever-escalating layered costs imposed on business. The Chamber is calling for a full review of the effects of the minimum wage on both businesses and minimum wage earners, and to explore alternatives to the “one-size-fits-all” approach. We’re also calling on the government to ensure that policies designed to reduce greenhouse gas emissions do not undermine the competitiveness of Alberta businesses. #2 – Chart a path back to balanced budgets.

Chamber members have told us very clearly that they are concerned about mounting debt resulting from the continual string of budget deficits delivered by successive governments over the past decade. If current economic and spending trends continue, Alberta will reach $95 billion in debt by 2023. More debt means higher debt servicing costs. Every dollar spent on interest is one less dollar for high-quality government services and world-class infrastructure. Businesses want to see a return to balanced budgets and want each party to clearly outline how they will get it done.

Continued on next page...

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The Chamber believes government should eliminate operational spending growth until the budget is balanced, and launch a full program and service review to eliminate under-used or ineffective services. This kind of review is not a novel idea – similar reviews are already being done in Edmonton and Calgary. Some might be concerned that limiting spending would mean less investment in infrastructure to support our growing population. We believe the political parties should consider all available infrastructure funding options, including publicprivate partnerships, to make sure we keep building the infrastructure we need to keep up with Alberta’s growing population. #3 – Diversify the economy and increase trade beyond our borders.

Alberta relies on the United States for 87% of all provincial exports, and internal trade barriers make it incredibly difficult to do business across the invisible boundaries that separate provinces and territories. Depending too much on a single trading partner or a single industry creates economic volatility and uncertainty for Alberta businesses. The Edmonton business community strongly supports efforts to diversify Alberta’s economy, including the diversification of our international and domestic trade relationships. This is nothing new – politicians have been talking about diversifying the Alberta economy for decades now. Rather than continuing with rhetoric, we need all parties to set specific and measurable diversification targets, with transparent reporting on results.

Trading with other provinces and territories can provide new markets for Alberta goods and services, but businesses are blocked by trade

barriers. Transportation rules, job certifications, and many other regulations vary widely from one province to the next. This means it’s often easier to do business in another country than it is to do business in another part of Canada.

Regardless of which party wins the election, priority must be given to removing barriers to interprovincial trade.

Efforts to diversify our markets should not stop at provincial and territorial borders – government can also support programs that help small and mid-sized businesses to export, ensuring they have reliable customers outside of Alberta when the local economy offers very little opportunity for growth.

All parties should outline strategies to diversify the economy, attracting new industries to Alberta.

BUSINESS-FRIENDLY POLICIES WILL LEAD TO A MORE PROSPEROUS FUTURE FOR ALL ALBERTANS The Edmonton Chamber is grateful to members for their feedback and assistance in developing these priorities for the 2019 provincial election.

Please lend your perspective and voice to these priorities as you speak with local candidates, as you discuss the election with your colleagues and friends, and when you head to the polls.

Regardless of which party succeeds in the 2019 election, we’ll work to advocate for policies that support the individual businesses and job creators who work tirelessly every day to grow our economy and keep Alberta strong and flourishing.

The Edmonton Chamber is a non-partisan organization, and we do not endorse any political party or candidate seeking elected office.

BE INFORMED. BE ENGAGED. BE VOCAL. Members in this Issue Canadian Mental Health Association - Edmonton Region in Overlooked Threats that Impact Wellness at Work on page 16 Colliers International in The Rise of the Rental Market on page 42 CBRE Ltd. and City of Edmonton in Edmonton’s Growing Neighbourhoods Define Their Identities on page 47

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Decision 2019: Keep Alberta Competitive List of Recommendations Priority #1: The Province must enhance the competitiveness of Alberta businesses by addressing the ever-increasing taxes, fees and regulatory costs layered onto business from all orders of government. This should include: 1.1 Undertaking a full review of the effects of labour legislation changes on both businesses and workers, including the $15 minimum wage, the revised Employment Standards Code and changes to the Labour Relations Code.

1.2 Exploring alternatives to the current “one-size-fits-all� minimum wage, including a possible trainee wage or a minimum compensation model that would account for employee benefits that are currently not captured in the wage rate (i.e. post-secondary education and training, health insurance, matching RRSP programs, etc.)

1.3 Ensuring that any programs designed to reduce greenhouse gas emissions do not undermine the competitiveness of Alberta businesses, and in fact bolster their ability to succeed in the global market.

1.4 Allowing large emitters to comply with the Climate Leadership Plan, in part, by purchasing verified carbon offsets on the global market.

Priority #2: The Government of Alberta must chart a path to a balanced budget and clearly outline how it will get there. This should include: 2.1 Eliminating operational spending growth until the budget is balanced.

2.2 Aligning spending with core government priorities, including a full and transparent review of all government programs and services to eliminate under-used or ineffective services.

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2.3 Using carbon levy compliance payments to fund debt reduction, if a carbon levy is maintained.

2.4 Considering all available infrastructure funding options for both construction and maintenance, including public-private partnerships.

Priority #3: The Government of Alberta must outline a strategy to diversify the economy and to increase trade beyond our provincial, territorial and national borders. This should include: 3.1 Setting specific, measurable and commercially sustainable five-year diversification targets that include performance objectives and transparent reporting.

3.2 Continuing to advocate for pipelines, allowing Alberta’s energy products to reach markets overseas.

3.3 Promoting the sale of our natural resources across Canada and to markets abroad.

3.4 Expanding programs that help small and medium businesses export to new markets.

3.5 Working with the federal government and other provinces and territories to develop an integrated national transportation utility corridor network, including the development of a northern infrastructure corridor.

3.6 Working with the federal government and all provinces and territories to promote free trade across Canada and eliminate interprovincial trade barriers.

Airworks Compressors Corp Member Profile Darryl Weflen/President www.airworkscompressors.com What’s your story?

The idea for Airworks came to fruition when I was doodling on a napkin, on the tailgate of my truck, thinking about the inefficiencies and problems with turning on a service truck just to use an air compressor. Being able to run an air compressor without having to run a service truck would save run time on truck engines, fuel, and most importantly it would decrease the emissions released from idling while working. Airworks Compressors incorporated in 2007, and now in 2019, we are manufacturing our own line of patented products. Our line consists of patented products like our air compressor the Twister, our Lightning Booster, our OTR tire deflators called the Cyclone, and most recently a hybrid conversion kit called the G-Force (patent pending). The G-Force allows large diesel trucks to be converted to a diesel/ electric hybrid. This upcoming November, we are testing the G-Force by sending a truck that has been converted with this technology to the South Pole. This expedition will have so many firsts for Canada! It will be the first Canadianled driving expedition, the first hybrid vehicle expedition, the first single-vehicle expedition, and we are working with Google to do the first Google street view of Antarctica!

What are three things people are surprised to learn about your business/or don’t know about your business?

1) We manufacture all of our products here in Edmonton.

2) Despite higher costs, whenever possible, we try to source all of our parts locally to support our fellow business owners.

3) We have distributors worldwide.

What has surprised you in the last 12 months?

The resilience of local businesses during the economic crisis.

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Darryl Weflen, President of Airworks Compressors Corp

What has been your biggest challenge in the last 12 months?

The biggest challenge for us this past year has been our current economy and rising production costs to manufacture in Alberta.

What do you think is the biggest issue impacting Edmonton’s small businesses at this time?

Transportation, tax rates, and the planned closure of our critical Yellowhead access routes, particularly in the west end, will contribute further to congestion on roads that access west end businesses. Currently, business taxes with the given economic situation are stifling the growth and viability of many small businesses in Edmonton.

Economic forecasting is difficult but patience and efficiency are key to not only surviving, but also being able to prepare for the transition for when conditions improve.

What’s your secret to keeping your employees engaged?

We have a pretty tight group of employees. We are fortunate that we have very little staff turnover. I truly believe that the way that we treat our employees exemplifies their commitment to us. We have so many new projects on the go at any given time that I think we keep everyone on their toes with new challenges every day.

Do you have a personal mantra?

We can’t change where we come from, only where we are going.

What do you enjoy most about being a Chamber member?

Networking and meeting like-minded business people.

Our Chamber mandate is to create the best environment for business in Edmonton. If you could make one substantial improvement to Edmonton’s business environment, what would it be?

I would like to see more promotions and events geared toward small businesses. I would also like to see lower business taxes that would encourage more investment here in Edmonton.

What is your favourite thing to do in Edmonton?

Other than work? Good food and the company of good friends.

Apple or Android?

Blackberry!

Your most favourite place in the world?

Anywhere with my wife!

Coffee or tea?

Coffee – black.

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Connecting Business Ruth Kelly Thought Leadership Series On February 14, 2019, the Edmonton Chamber of Commerce hosted an inspiring panel focused on leadership, health and wellness in honour of Ruth Kelly. Ruth was passionate about Edmonton and respectfully challenged ideas to create a stronger community. She reminded us to “Be Curious, Be Bold, Be Kind.” This was the first in this event series which is being championed by the University of Alberta Senate. The goal of the series is to conduct articulate and well considered discussions about controversial and sensitive issues to inspire audiences to learn more about the topic or better, to become active in helping to explore and secure alternative solutions.

Head Table guests included (left to right) Dawn Harsch, André Costopoulos, Janet Riopel, Dr. Deborah Saucier, Dr. Melanie Humphreys, Carolyn Campbell, Larry Kelly, and Shelley Miller.

Panellists Dr. Deborah Saucier, Dr. Melanie Humphreys and Carolyn Campbell following the discussion.

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Shelley Miller welcomes Chamber members and guests in advance of the panel discussion.

Growth and Opportunity: Energy priorities for a prosperous Alberta On February 27, 2019, CAPP’s CEO, Tim McMillan highlighted the challenges facing Alberta’s oil and natural gas industry and provided solutions-based recommendations. CAPP’s recommendations focused on a strong growth scenario for the oil and natural gas industry in Alberta, increasing its competitiveness in the global energy market and attracting investment back to the province.

Guests at the head table included (left to right) Rich Adams, Mark Plamondon, Janet Riopel, Tim McMillan, Jim Saunderson and Joe Ammar.

Tim McMillan and Janet Riopel take questions from the sold-out audience at the World Trade Centre Edmonton.

Tim McMillan responds to media following his keynote.

BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // APRIL 2019

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THE RISE OF THE RENTAL MARKET // RECREATION & INVESTMENT REAL ESTATE

THE RISE OF THE RENTAL MARKET CURRENT REAL ESTATE CONDITIONS ARE RIPE FOR INVESTMENT PROPERTY BUYERS

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BY JAMELIE BACHAALANI

L

ast year was a challenging year for Alberta’s real estate market. Buyers and sellers faced rising interest rates, a struggling economy, and a new federal mortgage stress test that tightened how much they could borrow. Designed to cool the real estate markets in Toronto and Vancouver but nationally implemented, the new policy requires buyers, even those with more than 20 per cent down, to prove they can pay a mortgage on whichever is higher – the Bank of Canada’s five-year benchmark, which is 4.98 per cent, or 2 percentage points higher than the offered mortgage rate.

Although Edmonton’s real estate market is sitting on shaky ground, there is some hope that 2019 will be more stable.

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THE RISE OF THE RENTAL MARKET // RECREATION & INVESTMENT REAL ESTATE

“Edmonton has traditionally been a suburban city where long commutes are the norm and fee simple ownership, usually in the form of single-family detached houses, are attainable options for most residents. However, the real estate market has shifted immensely over the last five or so years,” says Brandon Imada, an associate for Colliers International Edmonton.

According to figures from the Realtors Association of Edmonton, a total of 15,519 homes were sold throughout 2018. That’s a 5.57 per cent drop from 2017. The average time on the residential market also rose from 72 days to 84 days this year, which means pricing is expected to continue going down. The average selling price of a single-family home was $404,275 last month. Compared to January 2018, that’s a decrease of 6.04 per cent.

“It’s not only a combination of tighter mortgage rules, a new government, and the state of our oil-driven economy, but factors like international and interprovincial migration, and the availability of higher quality rental buildings have led to a huge boost for our rental market. There is also a generational movement happening in the market where more and more millennials are looking to rent rather than buy,” Imada explains.

Although it’s been a tough year for Edmonton’s real estate market, construction and property development haven’t seemed to slow down.

“You don’t have to be a real estate expert to understand the scale of development happening in our downtown area, as well as in suburban neighbourhoods. Nearly every development breaking ground has some form of residential component to it. Since condominium sales are historically low right now, I believe rental buildings will mostly likely be the development of choice,” he adds.

Even though Edmonton has nearly double the amount of apartment buildings then Calgary, there are nearly 3,000 brand new rental units slatted to hit the market in the next five years.

According to Imada, apartment and rental-only buildings provide developers with the flexibility to sell entire buildings as a whole and move on to new projects. While many of

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these new buildings are built with the intent to sell to large-scale institutional grade purchasers from Toronto and Vancouver, there is plenty of inventory for Edmonton buyers to invest in.

“When I first started back in 2016, the market was still a bit steady in the sense that first time homebuyers were not tested so heavily. Since the new mortgage stress test came into play, today’s market is definitely flooding with more houses than there are buyers ready to purchase a home,” says Suzanna Yu of Home and Garden Real Estate.

A large surplus in inventory and fewer resilient buyers that can pass the mortgage test means now is a good time to invest in rental properties. After all, what happens to the countless buyers who failed the test? They become renters, and plunging vacancy reflects that.

Between 2017 and 2018, vacancy dropped by a considerable 1.8 per cent even though thousands of units were added to the market. As a result, rents increased, and more and more large-scale purchasers continue to look towards the Edmonton market.

“It’s even attracted smaller local and interprovincial purchasers,” says Imada. “Last year I sold four properties to Vancouver purchasers, three of which were smaller apartments in the 12 to 20 unit range.

“Investing in real property is different than investing in the stocks. If the house burns down you have insurance, but if a company shuts down your stock portfolio may be hooped. Not only is [property] a good source of income for an investor, but they can potentially use it to leverage themselves into other larger investment properties,” he adds.

For anyone looking to build their portfolio, leverage is a huge advantage but investors, especially first-timers, need to understand how much of a commitment they are making before signing off on anything.

“I recommend most clients really budget out their choices before moving ahead with an investment property. The cost of investing and owning your own property are not the same, and there is also a chance you may not be able to rent it out for the price you had originally forecast,” Yu warns.

The Mortgage Stress Test is More Stressful than Intended

R

eal estate is regarded as one indicator of economic activity.

The more robust an economy, the greater the chances of real estate moving quickly and at higher prices.

A downward trend in real estate pricing can also effect construction additional real estate-related projects, unemployment rates as well as other sectors of the economy.

Unfortunately, the Edmonton market continues to underperform when compared to corresponding periods in the past five years. New mortgage rules requiring buyers to pass a mortgage stress test coupled with the decline of oil prices are two key factors contributing to the dampening in the real estate industry.

The opposite is true of a hotter market where homeowners often see themselves as having increased wealth and are more likely to spend more, especially in the area of bigger purchases.

The effects of the stress test are widely reported. Some buyers are delaying purchasing a home, while many sellers are seeing a significant chunk of their equity evaporate. In addition, sellers are experiencing longer days on market when compared to recent years.

Higher mortgages and more equity withdrawal often mean more money circulating in an economy. However falling home prices, less equity, consumer confidence along with a decrease in spending can have a negative impact.

Michael Brodrick, Chair, REALTORS® Association of Edmonton

We at the REALTORS® Association of Edmonton would like to see the stress test revised to target the markets for which it was intended rather than negatively affecting markets like ours. Hopefully, this will be a major issue in the upcoming elections.

However, there is also an overall economic impact of the stress test.

A significant number of homeowners’ wealth is often tied to the equity in their homes, equity is often used to finance purchases or to upgrade current homes. A decline in home equity can leave owners feeling trapped, unable to afford the decrease in property values or to secure substantial amounts of credit.

This can lead to a more cautious attitude toward spending, especially when faced with making large purchases.

A snapshot of the areas real estate contributes to economies including Edmonton’s: • Developers and Construction • Job creation • Home furnishings • Consumer confidence • Maintenance or increased consumer spending • Property taxes which benefit the municipality

Moving Life Forward.

Your next phase of life starts with a REALTOR®

THE RISE OF THE RENTAL MARKET // RECREATION & INVESTMENT REAL ESATE

“INVESTORS SHOULD LOOK AT BUYING TWO-BEDROOM CONDOS INSTEAD OF ONE BECAUSE THEY RENT OUT BETTER, ESPECIALLY IN WEAK ECONOMIES, AND BUYING IN DESIRABLE NEIGHBOURHOODS THAT TEND TO BE A LITTLE BIT MORE RECESSION RESISTANT. THOSE OFTEN INCLUDE INNER CITY AND AREAS AROUND COLLEGE AND UNIVERSITY CAMPUSES.” ~ NOLAN MATTHIAS

Nolan Matthias, co-founder of Mortgage360, Canada’s first B-Corp Certified mortgage company, advises buyers to assess the mortgage on the merits of the product itself rather than personal risk tolerance.

“For example,” he explains. “A five-year fixed rate has higher penalties, which makes it more expensive to liquidate if you need to off load the investment property. You probably aren’t going to stop owning a home for you to live in but, if life changes, a rental property may be the first thing on the chopping block. You don’t want to lose a huge chunk of your original investment because you chose a mortgage with a big penalty. Your average banker may have been taught that a five-year fixed rate is always safer, but when it comes to investment real estate, that isn’t the case.”

If investors are aiming to build up their portfolio, Matthias says a mortgage like the Scotia STEP or the MCAP Fusion can be hugely beneficial because attached to them is a line of credit with an increasing limit equal to the amount of principal that is paid down on the mortgage. These lines of

credit can be used to purchase additional properties, which helps investors move up the ladder.

But where is the best place to start?

“Investors should look at buying two-bedroom condos instead of one because they rent out better, especially in weak economies, and buying in desirable neighbourhoods that tend to be a little bit more recession resistant. Those often include inner city and areas around college and university campuses,” says Matthias.

“The checklist for an investment property in no way resembles a checklist for a residential home. It is much more expansive and directed towards the financial performance of the building rather than personal preference. Investors should pay attention to rent roll, financial statements, list of upgrades, status of mechanicals and other major items like tenant profile, area demographics, financing options, nearby developments or planned future infrastructure, and nearby amenities,” concludes Imada.

ABOVE: NOLAN MATTHIAS, CO-FOUNDER, MORTGAGE360

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EDMONTON’S GROWING NEIGHBOURHOODS DEFINE THEIR IDENTITIES // COMMERCIAL REAL ESTATE

EDMONTON’S GROWING NEIGHBOURHOODS DEFINE THEIR IDENTITIES AS MAJOR COMPANIES START TO CALL DOWNTOWN HOME, EDMONTON’S OTHER NEIGHBOURHOODS ARE TAKING THE OPPORTUNITY TO CARVE OUT AND REFINE THEIR IDENTITIES

BY ZACHARY EDWARDS

BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // APRIL 2019

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EDMONTON’S GROWING NEIGHBOURHOODS DEFINE THEIR IDENTITIES // COMMERCIAL REAL ESTATE

I

CE District is now in full swing. Many of the larger towers are not only defining a new skyline, but also filling with their new tenants. It’s big news for a city’s commercial real estate sector that has had a tough few years, but it’s also big news for many of the city’s more high-profile neighbourhoods.

As major companies move to Edmonton and downtown specifically, they bring with them employees looking to find the right place to build their lives. Their presence alone has had an effect on Edmonton’s commercial real estate, which is experiencing its highest office demand since 2012, with three straight years of positive absorption.

“We’ve definitely seen an uptick in the overall office market in the last year,” says Mark Anderson, associate vice president of leasing and sales at CBRE. “There’s been three new buildings built downtown and big tenants move into those buildings.”

Of those big tenants, one sector has dominated the high-profile moves: Bioware, Improbable, Jobber and Granify are all moving downtown, and they are all tech companies.

ABOVE: ICE DISTRICT RENDERING PHOTO SOURCE: ICE DISTRICT

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EDMONTON’S GROWING NEIGHBOURHOODS DEFINE THEIR IDENTITIES // COMMERCIAL REAL ESTATE

“Tech has definitely been the most exciting and active sector moving downtown,” says Anderson. “They see downtown as a move to the right place to do business, but they also see it as the right culture fit for their employees.”

It is this culture fit that is leading to a rare migration in Edmonton’s history: one back downtown. The city’s sprawl, previously due in part to the downtown airport limiting building heights, has seen Edmonton grow into one of the country’s largest major cities by footprint. Density has been a major issue for the city and one that is starting to be reversed by people moving back into the city itself instead of heading to the suburbs.

So why are tech companies choosing Edmonton? According to Anderson, it has everything to do with the city’s talent. “People speculate when big companies show up as to why they came but in our experience with these companies, they’re looking for two major things: the right talent and retaining them,” he says. “Edmonton and the University of Alberta are world leaders in computing science. We used to have a major brain drain but now people are staying. Tech companies want to tap into that talent so they’re coming here.”

ICE District may have brought businesses downtown, but neighbourhoods like the Brewery District and 124th Street are carving out solid identities too. For 124th Street, the area has once again become home to a thriving restaurant and arts scene. As for the Brewery District, it has filled with restaurants, shops, new developments and, yes, some locally-brewed beers, all of which are attracting people.

ABOVE: MARK ANDERSON, ASSOCIATE VICE PRESIDENT OF LEASING & SALES, CBRE

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EDMONTON’S GROWING NEIGHBOURHOODS DEFINE THEIR IDENTITIES // COMMERCIAL REAL ESTATE

IT IS THIS CULTURE FIT THAT IS LEADING TO A RARE MIGRATION IN EDMONTON’S HISTORY: ONE BACK DOWNTOWN. THE CITY’S SPRAWL, PREVIOUSLY DUE IN PART TO THE DOWNTOWN AIRPORT LIMITING BUILDING HEIGHTS, HAS SEEN EDMONTON GROW INTO ONE OF THE COUNTRY’S LARGEST MAJOR CITIES BY FOOTPRINT. DENSITY HAS BEEN A MAJOR ISSUE FOR THE CITY AND ONE THAT IS STARTING TO BE REVERSED BY PEOPLE MOVING BACK INTO THE CITY ITSELF INSTEAD OF HEADING TO THE SUBURBS.

“The city as a whole has benefitted from ICE District and the Brewery District because they aren’t simply districts, they’re destinations,” says Renée Williams, director of international market development for the City of Edmonton. “They are offering experiences and vibrancy, all of which help us sell Edmonton when we go to regional and international markets.”

As more people come to and stay in Edmonton, they will be looking for neighbourhoods and areas that match what they want from a local community. Such residential interest will help many neighbourhoods carve out their own niche and refine identities they have long been developing.

“Really so many areas in Edmonton are benefitting from residential development and increased residential density,” says Dave Young, managing

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EDMONTON’S GROWING NEIGHBOURHOODS DEFINE THEIR IDENTITIES // COMMERCIAL REAL ESTATE

director at CRBE. “You look at places like 124th Street and even downtown, areas that used to empty after 5 p.m. Now, people are living there, which makes the hospitality sector thrive, which influences the commercial market.”

Young points to another area that has seen a major upswing in development and, consequently, an uptick in people and businesses: Whyte Avenue. “We are seeing lots of lots of residential development in that area, not the big buildings that you are seeing downtown but lots of condos,” he says. “You are seeing people, really, and it has become the entertainment strip in Edmonton. It has found its niche and there’s really no other street like it in the city.”

For Williams, looking at what visitors want helps the city discover what will make it thrive in the future, which is why she works closely with other divisions at City Hall. “Something that we really benefit from here is that Explore Edmonton has a seat at the table for planning and events,” she explains. “They are building things for residents, of course, but thinking about the visitor helps them consider what else to build and other perspectives of people using these spaces. Leaders throughout the city, whether that’s city administrators or business leaders and entrepreneurs, they understand the need to evolve. That’s what’s going to keep Edmonton competitive and has all these years.”

Looking at this process in action, Williams points to two examples on either side of the river. “I look at 124th Street and Old Strathcona, each of which is instrumental in the story and history of our city. I look at these little pockets within, and those destinations come with your restaurants, your shops and your programming,” she says. “Someone can stay in a hotel on Whyte Ave. and spend three or four days really exploring that area. The same for 124th Street. Each place like that gives us more products to sell in the city and a greater range of things for people to do while they’re here.”

With these migrations, Alberta’s capital is also seeing major residential development that solidifies and creates new niches and identities in its neighbourhoods. For every major company looking for the right talent to make their business stronger, a new type of consumer stays in the city and hunts for a place to call home. That search leads to higher density in many of the city’s major districts, in turn changing them into destinations. From the galleries and restaurants of 124th Street to the entertainment and local shops of Whyte Ave., places around Edmonton are seeing new levels of popularity, and will surely see more changes in the future.

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WE BUILD FOR PEOPLE WE’RE RE-IMAGINING OUR CITY BY DEVELOPING RETAIL, OFFICE, INDUSTRIAL, AND MIXED-USE PROPERTIES THAT PRIORITIZE PEOPLE. To do our best work, we always think about our developments from the human perspective.

From the ways a retail centre can be accessed by pedestrians, to how an office tower integrates with the streetscape, we strive to develop spaces that bring people together.

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THE FUTURE OF GOLF

By Scott Hippe

F

or those of you that are true golf enthusiasts, the discussion surrounding the future of golf is a longwinded debate had on the patio while enjoying a beer with your friends after your round of golf; a debate that usually ends in a stalemate.

The reality for the game of golf is that it has changed over the years for many different reasons, whether it’s technology in the equipment, interest in the sport, or the economic landscape. Having been in the private golf club industry since 1999, I can tell you that there is one constant that has not changed; people who play this game love it and want to play all the time.

We recognize that there is a need to continually develop our business to meet the future needs of our members.

Our members need flexibility, adaptability, and accessibility that equate to the value proposition. Time is of the essence; having a full-service club that offers you all your golf needs gives you more time to enjoy the game of golf.

A major challenge I see is the time commitment in which we must place on playing golf. Long gone are the days where you would go to the golf course for lunch, golf, and then enjoy plenty of libations after the round. The game is becoming a family sport with more spouses, children, and grandchildren spending time at the golf course.

The EPGCC is embarking on exciting renovation plans that will provide our members with the flexibility and accessibility we want to achieve. Our goal is to redevelop our practice facility, increasing the size, and adding new features that will enhance your golf experience. Plans for the newly renovated area include a larger driving range, short game areas to practice any shot you can imagine under 100 yards (including bunker shots), a large putting green, and a three-hole loop with a full-length par 3, 4 & 5. These areas will be perfect to not only practice your game and improve your skills, but also to spend time with friends and family without playing a full 18 holes.

The future of golf may be simple; offer better value to a wider range of golfers and their families, however, this may be easier said than done. Anytime you start to consider expanding your offerings as a golf club, there is an inherent cost vs. benefit analysis, where cost usually trumps benefit as generating capital dollars can often be a challenge. Here at the Edmonton Petroleum Golf & Country Club (EPGCC), we are taking a proactive approach to enhance the value we offer to our members through our Capital Sustainability Program.

We have many options if you are interested in becoming a member of our premier private golf facility. Share purchase opportunities are available privately, as well as through the Club with the ability to finance. Trial memberships are available as a single associate or as a non-equity group of three. Contact us at epgcc@epgcc.ab.ca to discuss more about share and trial opportunities. We would love to talk with you. There is no better time to be a part of the future of golf than now.

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Edmonton Petroleum Golf & Country Club

Pure Golf Join our free loyalty membership and generate points while you play!

Earning points is easy!

We offer different ways to earn points through our program.

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Rounds of golf Food and Beverage purchases Merchandise Tournaments and more!

Every user gets a unique QR code that our staff can quickly scan with our custom software, making it easy to earn points while you play.

Contact us for information on trial memberships!

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Book your tournament or tee time today!

Call (780) 470-4700 or visit www.theranchgolf.com

Trestle Creek Golf resort is an ideal location to host your golf tournament, corporate retreat or wedding.

WEDDINGS & CORPORATE RETREATS

• Clubhouse up to 72 people • Event tent up to 175 people

GOLF ACTIVITIES

• 18 holes of golf • PGA of Canada Golf Professionals • Beverage cart services • Golf Tournament Packages available • Public Men’s Night - Thursday $49 includes golf, cart, meal and prizes. 6 p.m. Shotgun.

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• Corporate Advertising & Golf Programs • Memberships • Group Outings and Events • Weddings • Gift Certificates • Golf Merchandise or Golf Passes Prime time rate $99.00 (Twilight $74) includes 18 holes of golf, shared use of power golf cart, use of driving range before your round. Pricing excludes GST.

45 minutes West of Edmonton off Highway16, 30 minutes North of Drayton Valley, 40 minutes South of Whitecourt, 2.5 hours East of Jasper

P (780) 727- 4575 • F (780) 727- 4573 • E info@trestlecreek.ca www.trestlecreek.ca

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Contact us for more information at 780-929-4653 or visit www.coloniale.ca BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // APRIL 2019

55

PERFORMANCE MANAGEMENT PROGRAMS ARE EVOLVING, IS YOURS? // CPHR ALBERTA

PERFORMANCE MANAGEMENT PROGRAMS ARE EVOLVING IS YOUR COMPANY KEEPING PACE?

I

BY DAN BOUCHER

f you were to Google “Trends in Performance Management,” your search results would inevitably list a plethora of articles discussing how several well-known companies have moved away from the standard annual performance review and performance ratings. This includes companies like General Electric, Adobe, Microsoft and Deloitte – to name just a few. However, only a minority of companies in Alberta are following this trend.

According to the most recent HR Trends survey of HR professionals, conducted by CPHR Alberta, 68 per cent of employers have annual performance reviews, whereas just four per cent have monthly performance review meetings. Another 10 per cent use informal and ongoing coaching conversations in place of a formal performance management program.

Performance reviews can provide valuable data to an organization’s HR team. The data can contribute to the predictive people analytics, but only if there is a high rate of compliance so that there are minimal gaps in the data and, most importantly, if the right data is being collected.

Unfortunately, around a quarter of survey respondents said they are achieving less than a 75 per cent compliance rate with their performance review program. Half of respondents said they are achieving compliance above 75 per cent, but they are not yet seeing full compliance. The remaining quarter said they achieved full compliance with their performance review program. Clearly many employers are struggling to gain full buy-in from managers for their performance review programs, despite the fact 71 per cent of survey respondents reported

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APRIL 2019 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM

that compliance with their performance management program is a priority for their organizations.

Perhaps it is the lack of full participation in performance review programs that is leading to less-than-effective results.

Just 22 per cent of respondents agreed or completely agreed that their performance management program is effective at managing the performance of employees, 39 per cent somewhat agreed, 15 per cent somewhat disagreed, and 20 per cent disagreed or completely disagreed with the statement. Or perhaps, there is a need for employers to alter their approach towards performance management.

Performance management doesn’t just have to be about managing performance. A performance management program can be harnessed as a tool to increase employee engagement. In this context, performance management should feel less formal, happen more frequently, be forward looking and align the employee’s development with the organization’s strategy.

The formality of the once-a-year review and accompanying performance rating lends to creating a process that is uncomfortable for both managers and employees alike.

Managers struggle to evaluate and rate their direct reports’ performance in a comprehensive and fulsome manner that is based on more than just what is fresh in their mind – the past few months preceding the review. Likewise, employees can feel blindsided if the constructive criticism contained in the review has not been raised before. By encouraging managers to have more frequent check-ins (quarterly, monthly or even

PERFORMANCE MANAGEMENT PROGRAMS ARE EVOLVING, IS YOURS? // CPHR ALBERTA

weekly) with their team members, areas for improvement can be identified and challenges with performance can be addressed in a timelier manner. Similarly, accomplishments can be recognized closer to when they are achieved. Briefly documenting these conversations throughout the year will help managers put together more objective annual reviews – if the organization chooses to retain them as part of the performance management program.

Improving the timeliness of performance conversations isn’t enough to improve engagement, but it’s a move in the right direction. Engagement will grow the most when each team member understands how the work they are expected to do contributes to achieving the organization’s business plan and strategy and feel supported in that work. With this understanding, the employee, with the guidance of their manager, can set individual performance goals and expectations knowing they will be supported when barriers to success arise. Having a forward-looking focus to performance conversations will also help to identify development opportunities for team members that are aligned with future

and current needs of the organization. It will make developing an internal pipeline of future leaders easier.

It appears the shift away from annual performance reviews and the accompanying rating system will continue as our workplaces transform to keep up with the rapid rate of change. The demographics of the workforce are changing and the new generation of workers bring with them new expectations for their employers. If you, as a business leader, are considering adopting a new approach to performance management, reach out to your human resources team. They can assist you in evaluating how to proceed in a way that is consistent with your organizational culture. If you don’t have internal HR support, you can find a listing of HR consultants on CPHR Alberta’s website.

The workplace is undergoing transformation. Maybe its time to transform how we manage performance as well.

DAN BOUCHER IS CPHR ALBERTA’S DIRECTOR OF REGULATORY AFFAIRS AND RESEARCH. HE LEADS THE SEMI-ANNUAL HR TRENDS SURVEY, AND IS COMMITTED TO DELIVERING HIGH-QUALITY RESEARCH AND INFORMATION FOR ALBERTA’S HR COMMUNITY.

Research, Trends and Information CPHR Alberta provides insight on current and emerging human resources, trends, and issues.

Alberta HR Trends Report

New data is released twice a year on hiring confidence, retention, policy changes and more.

Western Canada HR Trends Report

This report compares data between Canada’s Western provinces and Yukon and ten industry sectors to provide a broader perspective of the labour market for Canada's HR professionals.

Hiring Confidence Index

The index forecasts how confident HR professionals are about hiring over the next six months; and incorporates views on growth or decline in the number of positions.

www.cphrab.ca/research BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // APRIL 2019

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THE GIG IS UP! // HUMAN RESOURCES

THE GIG IS UP!

THE GIG ECONOMY IS HERE TO STAY. SHOULD EMPLOYERS BE WORRIED?

BY NERISSA MCNAUGHTON

B

MO Wealth Management reports 2.18 million Canadians active in the gig economy – and that number continues to rise. Should corporations be worried?

“Corporations may be concerned about their employees participating if the gig is a direct conflict of interest with their position within the corporation. For example, if an employee is currently in an employment contract with a taxi company but they also are engaged as an Uber driver, this may pose conflicts with the corporation’s business as both positions would share the same customer pool,” notes Kimberley Gladden, CPHR, president, Human Power Consulting “Another potential conflict is if the employee is trying to engage in the gig economy during their regular work hours as a way to double up on income. As we are now in a digital age where the workforce is increasingly mobile, work can potentially be done from anywhere. This opens up the potential for an employee to be paid by two separate employers for the same hours worked.

“However, a corporation could also see potential benefits from their employee being engaged in the gig economy, as

the gig could fulfill a desire to chase their passions. This could lead to the employee being more fulfilled and in turn, more engaged in their current role.”

ABOVE: KIMBERLEY GLADDEN, CPHR, PRESIDENT, HUMAN POWER CONSULTING

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THE GIG IS UP! // HUMAN RESOURCES

Does a corporation have a right to stop employees from taking gigs? Gladden weighs in.

they fit in to the big picture? Do I understand what motivates this person beyond compensation?

“The corporation does not have the right to stop its employees from engaging in the gig economy unless the employee is participating within the regular hours of work stated within their employment contract. The company may try to protect itself by insisting the employee sign a restrictive covenant within their employment agreement such as: non-competes, non-solicitations and confidentiality agreements.”

“Millennials have a great need to contribute to organizations in a significant way and if they aren’t getting that, they can become disengaged. Years ago, a lot of emphasis was put on an employee being employed with the same company longterm (in some cases for their entire career) and we would see folks working for bosses they didn’t feel aligned with, for companies that didn’t treat employees well and being generally unhappy in their job. Now, tenure and longevity are no longer benchmarks.”

Gladden continues, “The gig economy has the potential to be both positive and negative to the employee and the corporation depending on the situation. It has the potential to offer a solution for an employee who is financially struggling within the confines of their current employment.

It could also allow the employee to engage in activities that are their passions, giving them an outlet to fill what would otherwise be a void. On the flip side, the gig economy has the potential to be a risk to both the employee and the corporation. When an employee is engaging in the gig economy, they may be doing so due to a financial need rather then a desire to do so. This could lead to resentment and employee burnout. Or maybe they just enjoy having a position where they have more flexibility, where they can pick their hours and pre-determine their levels of compensation. We have seen that over the last decade, workplace flexibility has become an important focus of many working people – especially millennials, who are now the nation’s largest generation in the workforce. Knowing this, the gig economy has the potential to take over the corporate businesses if they can not compete to keep their workforce.

Shannon Neighbour is a partner with Svensen Neighbour Recruiting, an Edmonton based recruitment agency focused on the placement of permanent sales, marketing, management, operations and human resources professionals. She is vocal about the role millennials play in the workforce, be that in a corporate or a gig environment.

“Millennials are motivated when they are working in jobs and on projects that they are passionate about,” says Neighbour.

“I think when employers question a staff members’ drive or willingness to work as part of the team, they need to reflect a bit deeper and ask: am I challenging this person enough? Have I given them specific feedback? Does this employee know how

Neighbour doesn’t see the gig economy as exclusive to millennials – and in many ways, as more of an economy resulting from corporate conduct.

“The term ‘gig economy’ was coined in 2009 at the height of the financial crisis when people could not find jobs. To make ends meet people started to get creative in their approach and they would work contract or part-time positions. I don’t think this was a ‘millennial thing’ as much as it was a sign of the economic climate. When an economy is tough, and it’s an employer’s market, who gets hired? More tenured, skilled candidates. Who doesn’t get jobs? Younger individuals who haven’t had the opportunity to develop a tenured professional career yet. Many millennials grew up having to work on more contract-based assignments because the long-term full-time roles were less available. As a product of this, I believe some people found their niche here realizing that there was an opportunity to work gigs and satisfy their desire to work on a variety of projects, meet new people and be exposed to different environments. This also allows flexibility, which is key to many employees these days – not just millennials.”

Does Neighbour feel gig work hurts corporate engagement?

“Some employers compensate well, and some do not. I think anyone who was in a job where they were underpaid would be looking for something new and now more than ever, employers are sensitive to the fact that to hire and retain good people you must pay what they are worth and what the market dictates. I think in certain cases gigs are great and can add value to an organization and enrich an individual, and I don’t know of any employers who wouldn’t be okay with their

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THE GIG IS UP! // HUMAN RESOURCES

employee having a gig as long as it didn’t interfere with the job requirements or it wasn’t a conflict of interest in some way.”

Chris Blasko, P. Eng., was an instrumental and control engineer in what used to be a very prominent Alberta-based company. After eight years and eight months to the day, he formed a mutually agreed upon exit strategy and said goodbye to fulltime employment. Times, and the company, had changed. The writing was on the wall and the employee pool at his workplace was shrinking fast. Blasko, wanting more control over his future, wasn’t phased by leaving. In fact, he welcomed it.”

“Well, I’m new to this option,” he says about having the ability to work gigs in consulting or freelance. “Without some kind of safety net, I’d be much more concerned about the financial viability of part time or casual work and the likelihood of pay gaps. The upside of my current situation is the ability to choose work that I find more interesting without the burden of heavy corporate overhead. Only time will tell if this is a viable option for the next portion of my career.”

He describes how he feels about having gigs as a full-time option.

“There is a place for all things in the gig economy, for the right person. Where one person could learn valuable skills and make important contacts, another might flounder due to the lack of structure and supports. That being said, my experience has always been that a certain flexibility of outlook will provide opportunities that might otherwise be missed.”

It is clear that there are many benefits for workers to engage full- or part-time in the gig economy, but there are clear benefits for corporations too, as Gladden explains.

“Outsourcing can be a great way for a corporation to have work completed with little to no risk. As many outsourcing opportunities come in the form of contractors, the corporation can take on this agreement without having to make considerations that they would have otherwise had to make in an employee/employer relationship. The contractor would not be eligible for things like vacation pay, stat holiday pay, sick time, nor would they get any health/dental insurance, pension or Employment Insurance arranged or supported by the corporation. The corporation would also

not have to carry any overhead costs associated with the contractor, like an office space, equipment or insurance.

For these reasons may corporations turn to outsourcing gigs. Of course, a contractor will often charge an increased rate to make up for these costs and personal liabilities.

The corporation would need to decide if the work they are looking at outsourcing is worth the financial impact to their business needs.

For the many workers and companies in Alberta, the rise of the gig economy means a lot more control over business costs, and or over one’s career and personal/family time.

According to Blasko, who has experienced the working world’s paradigm shift firsthand, the future of employment rests in the ability of both employees and employers embracing the change.

“Full time employment has been the norm at my place of work, but I have seen the value of a degree being degraded,” Blasko concludes. “Getting a degree and a basic level of competency used to generally mean a bright future. In our current market with constant downward pressure on costs, the value of a degree seems to be being reduced as less expensive options are always being considered – like outsourcing and automation. I would encourage any student to carefully consider the longevity of their chosen career with those factors in mind and consider how flexible and adaptable to changes in business practices and technology their field is. Regardless of what is chosen, I would suggest that continued learning and adaptability be built into any long-term plan.”

ABOVE: SHANNON NEIGHBOUR, PARTNER, SVENSEN NEIGHBOUR RECRUITING

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Photo by Rebecca Lippiatt

Celebrating

40

Nearctic keeps building, growing and thriving through all kinds of economic weather By Nerissa McNaughton

S

ome people have a rags-to-riches story, and you’d think David Kent would be one of them. After all, his life in Alberta started on a cold, winter day. He had arrived by bus in Fort McMurray, transplanted without prospects from his university in New Brunswick. His possessions?

Nothing but $11 and change in his pocket and a cup of coffee in his belly.

But this isn’t a rags-to-riches story because Kent had something far more valuable on him that day than $11. He had vision, talent, optimism, grit, determination, community spirit and a work ethic that spanned the next four decades. With that, he built Nearctic.

Nearctic is a property development and management firm with industrial, residential and commercial properties in its portfolio. Pelham Master Builder, Nearctic’s subsidiary company, develops new townhouse, apartment, and condo projects.

Five years ago, Kent shared the story of Nearctic with Business in Edmonton magazine as the real estate company was celebrating it’s 35th anniversary. Today, as Nearctic celebrates 40, what has changed?

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NEARCTIC PROPERTY GROUP CELEBRATES 40 YEARS “We have a new building!

We built the whole complex,” Kent says with excitement of Vantage Business Park. Although the charming prior headquarters with its red brick walls, white picket fence and flower shrouded gazebo remain just steps away, Nearctic started construction on a new head office in July 2017 and moved in during December of that same year.

“We do things relatively quickly,” laughs Kent. He’s lost none of his zest for life over the past five years. If anything, he’s younger and more energetic than ever.

Photo by Rebecca Lippiatt

The new office is a testament to what Nearctic and Pelham can do. Open web joists, a beautiful living wall, wood cross laminated glue lams from Alberta, open industrial ceilings in some rooms and dropped ceilings in others show potential tenants the many stylish options available.

pany that has a working history with us; we built another 60K feet with them as the lead tenant.”

“Part of the ongoing success and long-term relationships we have is due to remembering that ‘the wheel does turn.’ Sometimes you can’t accommodate a client’s expansion or contraction, but they remember how they were treated. Things come around. When they need new properties or an opportunity, they approach us.”

“What this [new office] allows us to do is bring in potential clients and show them three or four options all in one space and at varying cost points,” confirms Kent.

He provides an example.

The new office and business park are not all that Nearctic has been up to.

“Recently, Nearctic bought 50 acres near the airport from a well-known industrial auctioneer. We closed the deal in December 2015. Some people thought we lost our marbles, but we really liked the land.

Since we are a revenue producing corporation, we had the ability and capital for the project. We

“We have continued to build through the recession,” Kent says. “We have very good working relationships with our existing clientele, some who needed to expand. “We just did a deal with a comFrom Start to Finish Over the Last 40 Years, Nearctic has Delivered a Solid Track Record.

We’d just like to offer our congratulations on your winning performance!

Congratulations

Nearctic Property Group on 40 years!

500, 10410 -102 Avenue | Edmonton, Alberta | Ph: (780) 423-5855

Dispatch Phone: 780 463 8380 BURNCO.COM

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2

saw an opportunity that other people were not prepared to take. Within 364 days, one day short of a year, we were able to finance, rezone, build, service and sell 25 of the 41 net acres.”

Congratulations

“We have the ability to do things and react very quickly due to our long history and good working relationships with the counties, City of Edmonton, and others. We have often built in tough times using our reputation and finanical strength.”

Nearctic Property Group on 40 years!

Another example of the strength and agility of Nearctic is seen in the second phase of Commerce West Business Park. This project entailed creating 60K feet of commercial space, at a time when few builders were creating commercial spaces.

G&J Construction Group - Paving - Subgrade & Base - Earthworks - Landscaping

“We started construction in March of 2018 and achieved substantial completion by November 30.

We opened on January 1, 2019 with 60 per cent of the building live. Now, we have 80 per cent of the building committed and hope to be at 100 per cent by summer when we finish the landscaping.”

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Ah, yes. The landscaping.

Nearctic is famous for their beautiful landscaping.

Kent draws inspiration for Nearctic’s landscape designs from his mother, who was a prolific gardener. The Kents also have direct ties to noted gardeners on both sides of the family, boasting the likes of Lois Hole on the family tree.

Commercial - Institutional - Industrial Your Building Envelope Specialists

“I’ve always been passionate about trees and landscaping,” Kent admits. “Around here I’m known as ‘Johnny Appleseed!’

Contracting Ltd.

“The city has a minimal standard for landscaping, which we just generally throw out. We substantially upgrade that minimal standard. I’m always very particular about how our buildings look, both inside and out. Our buildings are coordinated for colour, functionality, aesthetics, and practicality.

To achieve this, we work with architects, engineers and designers for the look, and brokerages to see where the missing pieces are.”

By missing pieces, he refers to common design flaws that don’t serve the tenants. After consulting those in the know, Nearctic innovated small commercial spaces (3K- 4K square feet) with a difference. Each spot received a dock and grade access, and power distribution 50 per cent above standard.

This enabled the complex to easily take on tenants with high electrical component needs. As Kent notes, this helped the building’s rapid lease out.

CONGRATS NEARCTIC PROPERTY GROUP! 18039 114 Ave NW Edmonton, AB. T5S 1T8 Phone: 780-481-1776 | Fax: 780-481-2818

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NEARCTIC PROPERTY GROUP CELEBRATES 40 YEARS On the residential side, Pelham Master Builder is putting the finishing touches on 180 upscale apartment units in Summerside. The Village at Summerside is set for completion this summer, with the first building ready for occupancy this spring.

ute to the builder’s success, but a great deal is also attributed to the fact that clients can contact Kent and the management team directly.

“If you have a problem, you won’t have any trouble getting a hold of me,” he confirms. “This is a very open office. Everyone has a direct line of communication.”

“We continue to work on sound transmission. One of the innovations we have both in Grovenor Manor and in the Village at Summerside is floors with up to 11 layers. You do not hear people walking above you. Our walls are physically separated and insulated with Roxul, which will not mould and has a higher sound transmission density. With those two things alone, we far exceed sound transmission minimal standards. Our joists do not bear on the walls internally, therefore, the floor cannot transmit the sound directly into someone’s living room. That costs more to do and it is not visible to the public, but the quiet enjoyment in each unit is felt.”

You also won’t find him moving head office to another city.

“There are a lot friendly and easier places to conduct our business, but what I love about Edmonton is the depth of the knowledge of the design, engineering and construction industry out there.”

In 2015, Kent received a Business in Edmonton Leaders award.

“I’m proud of that award because it recognized our contributions in the community as well as our business acumen,” smiles Kent. Giving back is a very big part of Nearctic and Pelham’s operations, and also a large part of his personal philosophy.

Kent continues, “In almost all properties we have 36-inch doors and wide bathrooms to accommodate aging in place. We won an award for that adaptability in Grovenor Manor.”

While many have driven past, or are tenants of, a Neartic or Pelham property, few realise the full range of the company. Neartic and Pelham have been involved in everything from Nisku Crossing to projects in the United States. In Edmonton alone, a mix of own-use, build-to-suit, residential, retail and industrial properties add up to 185 commercial tenants and 800 residential units.

Although Kent cites “too many to count” when he looks back on all the people that are a part of Nearctic’s success story, he is especially grateful to those he’s worked with over the past 40 years, including past and present staff, and denoted special thanks to Guy St. Germain, the VP of operations for 25 years.

“I’ve been very fortunate, working with people internally or externally – consultants, planners, engineers.

I also thank my longsuffering wife of 30+ years! She has her own business background and is a wonderful

The vast number of projects, innovative building designs, and firmly established relationships contrib-

GEC is proud to have partnered with Nearctic Property Group on the design of their new head office and wish them many more years of continued success.

gecarchitecture.com 4

We want to congratulate Nearctic Property Group on 40 years of business!

We are proud to have been working together for 30 years and are thankful for the impact Nearctic has had on us. Here’s to another 40 years, congratulations again!

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The best success stories are the ones written right here.

Congratulations to Nearctic Property Group on 40 successful years in business. Your contributions towards building our community exemplifies what makes Edmonton a great place to live, work and play. We look forward to helping you reach even loftier heights in the years to come. Every relationship is a partnership – when you succeed, we do too.

Justin Solberg AVP & Manager, Real Estate Lending t. 780.421.5596

Jeff Pollock AVP, Real Estate Lending t. 780.421.5597

Edmonton Main branch 12230 Jasper Avenue

A CWB Financial Group company

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5

NEARCTIC PROPERTY GROUP CELEBRATES 40 YEARS supporter that helped us keep the doors open over some of the more difficult periods of time. I’m very grateful to Pat Grant of Sunlife, who taught me as well as many others in this market. He’s one person that helped give me some bedrock on how to run a revenue producing portfolio.

IN MEMORY OF PATRICK ADAMS “We lost one of the good ones. Pat was well liked and respected in this industry.”

That’s how Kent describes the loss of Patrick Adams, Nearctic’s COO and a key player in the creation of Vantage Business Park, Commerce West, the new head office, Grovenor Manor, and other properties.

Looking to the future Kent has a clear goal: continue to build the team, the buildings, and the Edmonton region.

“I guess I’m still a little kid at heart!” he concludes with a laugh. “Completing a project and putting people in it, be it a commercial space, condos or an apartment, or a build-out in an industrial space, I love having people say, ‘wow this is exciting!’ Gratification is starting with an idea, a nugget, working with the iterations, completing it and turning over the keys.”

When Adams passed unexpectedly, friends, fierce competitors, and associates of Nearctic all reached out with offers of assistance.

Nearctic Property Group

Nearctic continues to mourn the loss of Adams, and thanks the generous building community of Edmonton for their condolences and support during that time.

14520 – 116 Avenue Edmonton AB T5M 3V9 Phone: 780-414-1700 www.nearctic.com

CONGRATULATIONS

Congratulations Nearctic!

ON YOUR 40TH ANNIVERSARY NEARCTIC PROPERTY GROUP

COMMERCIAL CONSTRUCTION RENOVATIONS • DESIGN BUILD

PH: 780-760-0806

FROST & ASSOCIATES VALUATION SERVICES INC.

14530 - 116 Ave. Edmonton, AB T5M 3E9 Fax: 780-760-0807

#150, 17510-107 Avenue Edmonton, Alberta T5S 1E9• (780) 462-1782 www.frostvaluations.com

CONGRATS NEARCTIC PROPERTY GROUP ON 40 YEARS!

An achievement worthy of a standing ovation.

Congratulations to our client Nearctic Property Group on 40 years of success!

11608 – 145 Street Edmonton, Alberta T5M 1V8 Telephone: (780) 218-5486

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AV Solutions at the

TOUCH OF A BUTTON WITH

Matrix Video Communications

W

by Rennay Craats

hen Matrix Video Communications started out in 1994, it provided broadcast video products to the local film industry and independent television content producers. As technology changed, the market shrunk and prices for equipment dropped drastically, and founders Glenn and Shelly Burgess saw the writing on the wall. They embraced the adapt-or-die philosophy of tech companies and branched out.

“We morphed into something new,” says Glenn Burgess, CEO of Matrix Video. “We were always on the periphery of the corporate, education, government markets so we decided to get more aggressive in those areas.”

It was a great decision. Matrix has grown into a national leader in the area of consultation, design, integration and installation of audio, video and multimedia systems for Canadian companies across sectors. Specialists across the country are on hand to design, install and service sophisticated broadcast, production and audiovisual systems that are easy to integrate into a company’s everyday operations. There are experts in different areas working out of all eight locations in Victoria, Vancouver, Calgary, Edmonton, Saskatoon, Regina, Winnipeg and Toronto Matrix Video Communications • 25th Aniversary • 1

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expectations – which is to have a sophisticated system operated with the touch of a button.

By using only the best technology from the top manufacturers including Sony, Sharp, Samsung, LG, and NEC, Matrix’s projects are designed to deliver.

Rogers Place

and these specialists are shared between offices to ensure clients receive the best solutions to their communications challenges from the best people.

“We have to find out the client’s requirements, what they want their equipment to do, what they want to accomplish and then we design a system around that,” Burgess says.

Whether it’s a small huddle room, a sophisticated boardroom or a university lecture hall, Matrix has the right people on the job to integrate the best equipment to meet and exceed the client’s

Matrix has a diverse portfolio with incredible projects across the country and across industries.

For the Calgary Tower’s 50th anniversary, Matrix created a video wall to celebrate the history of the iconic building and the city. The custom installation features 21 55-inch screens wrapping around the curved wall, providing visitors with a unique viewing experience.

The company is also proud to be part of various educational projects in Calgary. Matrix supplied, installed, programmed and trained clients on the technology incorporated in the Taylor Institute for Teaching and Learning at the University of Calgary.

Collaborative spaces equipped with the latest technology instruct in-training teachers on how to use technology for 21st century education. Matrix also completed the teaching lab at the Foothills Medical Centre that allows practitioners to learn about and train in new methods of treatment.

“They can break into small groups or have all 18 stations on one case at the same time, and stations have individual monitors, microphones and

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Matrix Video Communications • 25th Aniversary • 2

speakers embedded,” says Burgess. “It truly was a custom design.”

The largest of Matrix’s projects was Rogers Place in Edmonton. This $11-million contract involved designing, providing and installing the state-ofthe-art video production as well as digital signage screens throughout the arena. There are roughly 1,300 displays supported by around 850 signage players that can either be programmed to all show the game or be customized to broadcast individualized messaging.

The technical sophistication of these custom systems requires specialized staff, and Matrix has the best in the business. Many of the company’s 78 employees have been with Matrix for a long time and have helped it evolve, grow and adapt in the market. And unlike many AV integrators, Matrix’s growth has not come from mergers and acquisitions.

“Our growth has been all organic. I think that allows you to better manage the expansion and maintain the corporate culture. Matrix’s growth

has focused on the company’s strengths and has been steady and controlled,” says Shelly Burgess, Matrix CFO. The team is enthusiastic about the growth potential moving into the future as well. There are exciting possibilities for corporate applications as well as more creative areas including using projectors to display art on nearly any surface. The company is also considering opening additional offices in Eastern Canada to further establish Matrix as a truly national player and to encourage opportunities for such projects as sports arenas and federal government projects.

Matrix Video Communications has been on the cutting edge of the business for 25 years, often outselling large American competitors in some product lines, all the while creating the perfect communications and presentation systems for longtime clients. As technology continues to evolve and change, the Matrix team will be there to provide solutions for every need, every time, every step of the way.

Congratulations Matrix Video Communications on 25 years of excellence!

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Samsung Electronics Canada extends its congratulations to Matrix Video Communications Corporation on celebrating its 25th anniversary.

Best wishes for continued success.

Matrix Video Communications • 25th Aniversary • 3

APRIL 26-28, 2019 Terwillegar Rec. Centre | Edmonton, Alberta

Support the Alzheimer Society of Alberta and Northwest Territories

by Donating to a Player or Team at www.alzheimersfaceoff.ca

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THE SECOND GENERATION CONTINUES THE LEGACY

BY NERISSA MCNAUGHTON

SORRENTINO’S RESTAURANT GROUP CELEBRATES 40 YEARS

SORRENTINO’S RESTAURANT GROUP • 40 71

T

he Rago and Saccomanno family has been very busy over the past few years, taking their already wildly popular restaurant brand and expanding into even more tasty ventures. Business in Edmonton magazine caught up with Carmelo Rago, Sorrentino’s Restaurant Group’s president and CEO, to learn what’s on the menu.

“Five years ago, I decided to make the bold move to add a new concept to the existing Sorrentino’s Restaurant Group,” says Rago. “This was mainly planned for the new generation of the family. Since all four of our sons, Maurizio, Carmelo Jr., Pasquale and Antonio, have made the decision to pursue their careers in the family business, it was important to move ahead with a more modern concept. Hence, the Buco Pizzeria + Vino Bar, a concept which is very contemporary, chic, and casual for all age groups. To date we have three locations.”

The locations of Buco Pizzeria + Vino Bar are in St. Albert, Epcor Tower downtown and Windermere.

Hailing from Avellino, which is near Naples, Italy, Rago is familiar with authentic pizza and is happy to share with Edmontonians and area the authentic Italian food at Buco. Here diners will find, in addition to pizza, assaggini (small plates), antipasti (appetizers), zuppa and insalate (soup and salads), griglia (grill), pasta (made in-house) and panini. Of course, no visit to Buco is complete without finishing the meal with another made-in-house staple: dolci (desserts)!

Buco pizzas are made Neapolitan style, made with just 00 flour, yeast, salt and water. The only things stretching and tossing the pizza dough are the hands of the chefs.

No mechanical implements are used, not even a rolling pin. After this hands-on tender loving care, the pizzas are topped and baked in a classic birch-wood oven.

Maurizio Saccomanno

To bring even more of Italy to Edmonton and area diners, Buco uses as many denominazione di origine protetta (aka D.O.P., protected designation of origin) items as possible. That means, the tomatoes, olives and even the cheese come directly from Italian farmers and artisans that are still using old world methods of food production. You can literally taste the authenticity and love of these artisan’s crafts in every single bite.

The Rago and Saccomanno family may be innovating in the kitchen, but the delicious foods, Italian coffee and wine at Sorrentino’s, Buco Pizzeria + Vino Bar, Bistecca Steakhouse + Wine Bar and Caffè Sorrentino are just a few of the reasons behind the restaurant group’s success. At every stage in the journey, the family has realized the importance of moving with the times and being proactive, not reactive, to the changes that affect the hospitality industry.

There is, however, one item on the menu that is a much more modern invention, one that has gluten-intolerant diners rejoicing: gluten-free pizza. Carefully constructed so that everyone can enjoy a delicious pizza, Buco uses gluten-free Italian flour to create a pizza with the taste and texture gluten-intolerant diners crave.

“With the present economic challenges in our industry, future expansion plans are on hold,” admits Rago.

“Labour costs have been pushed up by minimum wages, food prices are forever increasing, carbon tax, etc. The challenges are felt by everyone and as a result, the consumer is spending less.”

SORRENTINO’S RESTAURANT GROUP • 40 • 2

Photo courtesy of Francesco Sapienza

“However, that doesn’t mean the existing locations are slowing down, in or out of the kitchen,” continues Rago. “It just means that we need to manage our business more diligently and look at alternative ways to work with what we have without comprising quality and job security.”

“This year we are celebrating our 40th anniversary!” smiles the patriarch. “We have come a long way since 1979 when my late father-in-law, Maurizio Saccomanno, and I naively embarked on this venture. Maurizio sadly passed away in 1991 but his spirit continues to guide us in every way, and I hope he is proud of what the family has accomplished together.”

“We are a local family-owned restaurant group that puts community first. With the help of all of our family members, in particular my brothers-in-law, Frank and Matteo Saccomanno, and our extended family of great and talented staff, our group has been able build and maintain a splendid reputation over the past 40 years.

We continually strive to provide the best ingredients for delicious food at reasonable prices, contemporary surroundings and honest, family-like service and atmosphere.”

“Each of our restaurants are similar but hold their own personalities. This is attributed to the great team members at every location. Each brings to the table their own personality and caring work ethic, which is a prerequisite to our company.”

The Sorrentino’s Restaurant Group experience doesn’t end with dinner. “We have the creativity and are marketing-minded to introduce different festivals, wine dinners, cooking classes, charity events, competitions and more to separate ourselves from other restaurants,” adds Rago.

Congratulations Sorrentino’s!

Lavazza wishes Sorrentino’s a happy 40th anniversary!

Fall in love with Italy’s favourite coffee at Sorrentino’s.

13421 St. Albert Trail N.W. Edmonton, AB T5L 4X1 (866) 924-2727 | www.hesco.ca

SORRENTINO’S RESTAURANT GROUP • 40 • 3

Over the past 40 years the Rago and Saccomanno family has experienced many happy milestones, and for Rago, his fondest memories stem from what he calls “the most important aspect of our company,” – giving back.

“Our Garlic Festival and Garlic Stomp have become part of the very fabric of this city,” he informs. “The Garlic Stomp helps raise awareness for various causes and has helped raise millions of dollars to support their endeavours. This year’s Garlic Stomp, which is sponsored by Mosaic Home Services, will be supporting Pilgrims Hospice – A Home for Hospice campaign. The Roozen Family Hospice Centre project will be Edmonton’s first stand-alone residential community hospice, which will incorporate the best in end-of-life care and offer specialized family-centred care and grief support from a comfortable, homelike community setting.”

Their personal highlight was their decision to sponsor Sorrentino’s Compassion House. “The house that love built,” is how they describe the home away from home which has supported women (and their families) since 2003. The House is a quiet, safe, and welcoming haven for women across northern Alberta (and northern Canada) that must travel to Edmonton for diagnosis and treatment of cancer. Now, women can focus on their treatment and recovery with a significant other or family member/friend by their side, thanks to Sorrentino’s Compassion House.

It’s no secret that Edmonton (and area) loves the Sorrentino’s restaurants. After all, Rago and his family were the ones chosen to host Wayne Gretzky’s retirement party. The members of the Sorrentino’s Restaurant Group love Edmonton right back.

“Being able to work with our family, not only our immediate family but the entire team who we consider our extended family, is one of the most rewarding highlights in my life,” says Rago. “Working with individuals who are compassionate, caring people with big hearts makes it easy to have a culture of giving back to our community; and of course, I am very thankful for our guests. The people we have had the privilege to meet over the years is overwhelming. Even more overwhelming has been their loyalty to Sorrentino’s Restaurant Group. We have grown together over the past 40 years and many friendships have been made.”

On behalf of the entire Sorrentino’s Restaurant Group, along with the chefs, managers, team

Compassion House

SORRENTINO’S RESTAURANT GROUP • 40 • 4

members, and support staff, Rago says, “A heartfelt thank you for supporting us for the last 40 years.

We are a simple, family-owned business with that little extra ‘oomph!’ We are happy to spend a few

extra hours a day above and beyond the usual business hours to run the company, as this ensures we can continue to provide something special for the community. Grazie!”

CONGRATULATIONS ON YOUR

40

TH

ANNIVERSARY! WE WISH YOU MANY YEARS OF CONTINUED SUCCESS

Congratulations MNP congratulates Sorrentino’s Restaurant Group on 40 years of success.

To find a business advisor near you, visit us at MNP.ca

WWW.SYSCO.CA SORRENTINO’S RESTAURANT GROUP • 40 • 5

Learn more about Sorrentino’s Restaurant Group at www.sorrentinos.com, and more about Buco Pizzeria + Vino Bar at www.bucopizzeria.com. The websites are where you can read the delicious menus, learn about upcoming events, inquire about catering, make a reservation, book a cooking class, buy gift cards, and more. Some of the restaurants in the Sorrentino’s Restaurant Group have also partnered with Skip the Dishes, for when you crave authentic Italian food in your own home. You can also keep up with everything new and exciting for the brand by following @bucopizzeria and @SorrentinosEdmonton on Facebook, and @sorrentinos_yeg on Instagram.

Head Office 10665 109 Street Edmonton, AB T5H 3B5 T 780.474.6466 • F 780.474.6494 info@sorrentinos.com • sorrentinos.com

Congratulations on your 40 year anniversary!

The Newton family looks forward to your continued success.

Proud Partner and Gelato Supplier to Sorrentino’s!

13151 - 156 Street Edmonton, AB • 780.944.9407 www.newtons.net

TASTE & TRADITION For generations the Zenato family has perfected traditional Veronese winemaking methods to create their award-winning wines.

780.819.8283 www.davinci-gelato.com

Yvonne Irnich, CEO & Gelatiera DaVinci Gelato Inc ST. ALBERT • ALBERTA

Congratulations from all of us at Optimum Solutions to the Sorrentino’s Restaurant Group for reaching this significant anniversary of fourty (40) years of culinary excellence. You are a valued partner of our flight kitchen network and your contributions over the past ten years have helped make us who we are today. All of our achievements are made possible because of your individual efforts as well as the efforts of your team members.

Thank You for your hard work and dedication.

We look forward to your ongoing contributions and a bright and successful future together.

Exclusively imported by www.galileowineandspirits.com

www.zenato.it

CONGRATULATIONS SORRENTINO’S GROUP TO 40 YEARS OF SUCCESS!

optimumcanada.com

SORRENTINO’S RESTAURANT GROUP • 40 • 6

EXPERIENCE MORE AT THE EDMONTON EXPO CENTRE // EEDC

EXPERIENCE MORE AT THE EDMONTON EXPO CENTRE

A

s Edmonton Economic Development’s (EEDC) newest division, the Edmonton EXPO Centre is inviting guests and clients to experience more! The venue is a powerful economic catalyst, providing authentic experiences and limitless opportunities in the most imaginative event space in Canada.

Built in 1983 and expanded in 2009, there isn’t an experience that western Canada’s largest trade, consumer and events venue hasn’t hosted. Now under the EEDC banner, the Edmonton EXPO Centre is even better positioned to work collaboratively with its sister divisions, the Edmonton Convention Centre and Edmonton Tourism, to attract and host amazing large-scale event experiences that generate significant economic activity and impact for our city. Through trade and consumer shows, concerts and festivals, national sporting events, conferences, business meetings and celebrations of every kind, the venue welcomes more than 1.5 million guests annually and delivers more than $33 million in economic impact for our city.

Size Matters As the largest venue of its kind outside of Toronto, the Edmonton EXPO Centre team has a unique ability to adapt their space, both indoors and outdoors, into any configuration. This is why it is home to over 400 diverse events annually. With a vision to be one of North America’s top performing venues, planners help clients imagine events with fewer infrastructure barriers than other facilities.

Featuring nine exterior access overhead doors and 11 large loading docks surrounded by 3,900 parking stalls and outdoor staging areas, the Edmonton EXPO Centre manages the biggest and the best shows in the event industry. Just ask the Edmonton RV Show team who bring over 500 recreational vehicles indoors every February, or consider the Edmonton Cottage Life and Cabin Show, where a full-sized

cabin replica is erected inside to wow guests. The 600 luxury vehicles that fill up the venue for the prestigious Edmonton Motorshow every April is another stunning example of how Edmonton EXPO Centre clients can dream big, and trust that the venue and staff can deliver on the grandiose details every time.

People Matter It takes a special kind of team to activate and operate in a space this size. The venue boasts a tight-knit and seasoned team with an unshakeable commitment to service excellence – more than 40 per cent of the staff have received awards for 10+ years of service.

In May 2018, the EXPO Centre hosted Volleyball Canada Nationals, which was brought to Edmonton through close collaboration with EEDC’s Edmonton Tourism division. From junior matches between 14-18-year-olds, to international matches in men’s, women’s and sitting Volleyball, this event brought over 10,000 athletes and 12,000 spectators to the venue. Generating over $30 million in direct economic impact, a whopping 864 teams played 3,184 games on 55 sprawling

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EXPERIENCE MORE AT THE EDMONTON EXPO CENTRE // EEDC

volleyball courts throughout the entire venue. This event required expert coordination and communication among all departments, from parking and event operations to food and beverage and guest services.

“Extraordinary things happen when the right team is in place,” says Arlindo Gomes, general manager of the Edmonton EXPO Centre. “We empower our employees to go above and beyond for our clients and guests to ensure every interaction they have with us is exceptional”.

With a full-time contingent of 76 staff and over 600 parttime staff, the Edmonton EXPO Centre is a proud team of experienced facility operators, culinary service experts, event and guest services staff, security personnel, and sales and marketing professionals. This engaged and energetic team helps make the Edmonton EXPO Centre a preferred destination for unique events that drive commerce, build connections and networking opportunities, and create lifelong memories.

Community Matters Owned by the City of Edmonton and managed by the Edmonton Economic Development Corporation, the Edmonton EXPO Centre has a mandate of providing economic and social benefits to the Edmonton region.

Playing host to large scale events such as K-Days and Farm Fair International, the EXPO Centre demonstrates its value as a community asset by supporting the City of Edmonton’s long-term vision of regional prosperity and providing an environment to connect people and business.

While the Edmonton EXPO Centre has deep roots in the community as a space to come together for amazing experiences, it also supports numerous charitable organizations and communities in Edmonton through inkind support of equipment and resources. To ensure support has the greatest impact possible, community investment efforts are focused on initiatives related to the area’s neighbours and local youth initiatives.

Some of the most recent partnerships include Special Olympics Alberta, Kaleido Family Arts Festival, Deep Freeze: A Byzantine

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Winter Festival, Parkdale and Cromdale community league events, the Junior Chamber International Edmonton Holiday Hamper Program, and YoungLeaders.World.

Did You Know • The Edmonton Expo Centre has a resident sports team! The Edmonton Stingers are part of Canada’s newest professional basketball league, the Canadian Elite Basketball League (CEBL). Starting in May, the venue will host 10 home games against teams from Fraser Valley, Guelph, Hamilton, Niagara and Saskatoon.

• Executive Chef Jiju Paul has experience in five-star hotels across India, Canada and the United Arab Emirates, where he was part of the Emirates Culinary Guild and led the Fairmont Ajman Culinary team in international culinary competitions.

• The Centre diverts 60 per cent of the waste generated at the venue. That’s over 620 tons of material avoiding the landfill each year though recycling and organics programs.

• Hosted events like the Edmonton RV show provide a robust impact to our city, with $14 million in sales activity over one weekend and thousands of attendees.

• The venue is a catalyst for commerce. Every year hundreds of Edmonton small businesses participate in the numerous tradeshows to promote and scale up their businesses.

• Edmonton Expo Centre isn’t afraid to get dirty! Sixty tons of dirt was brought in for the PBR Edmonton Classic in October. Being host to 50 bucking bulls and 32 bull riders takes a crew of 30 people over 36 hours to set up.

• Ice was created inside Hall D for the first time in 14 years in preparation of Disney On Ice presents Dare to Dream. Over 20,000 guests and a lot of happy princes and princesses took in 11 performances.

• The venue hosted Her Majesty Queen Elizabeth II and His Royal Highness The Duke of Edinburgh in 2005 for the Alberta Centennial visit. Fast forward to 2018, and the venue played host to Princess Anne, the Princess Royal for the 28th Commonwealth Agriculture Conference.

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